Sri Lanka Consolidated Acts

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Companies Act (No. 17 of 1982) - Sect 189

Approval of company requisite for payment by it to director for loss of office, amp;c., or for any payment, in connection with transfer of its property, amp;c

189.
(1) No company shall make to any director of such company, any payment by way of compensation for loss of office, or as consideration for, or in connection with, his retirement from office, unless particulars with respect to the payment (including the amount thereof) are disclosed to members of the company and the making of such payment is approved by the company:
(2) No company shall in connection with the transfer of the whole or any part of the undertaking or property of such company, make any payment to any director of such company by way of compensation for loss of office, or as consideration for or in connection with his retirement from office, unless particulars with respect to the payment (including the amount thereof) are disclosed to the members of the company and the making of such payment is approved by the company.
(3) Where a payment is made to a director of the company in contravention of the provisions of subsection (1) the amount received by such director shall be deemed to have been received by him in trust for the company.

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