196.
| (1) In a limited company the liability of the directors or managers, or of the managing director, may, f so provided by the memorandum, be unlimited. |
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| (2) In a limited company in which the liability of a director or manager is unlimited, the directors or managers of the company, if any, and the member who proposes a person for election or appointment to the office of director or manager, shall add to that proposal a statement that the liability of the person holding that office shall be unlimited, and the promoters, directors, managers and secretary, if any, of the company, or one of them, shall, before the person accepts the office or acts therein, give him notice in writing that his liability will be unlimited. |
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| (3) Where any director, manager, or proposer makes default in adding the statement referred to in subsection (1) or where any promoter, director, manager, or secretary makes default in giving the notice referred to in that sub section, he shall be guilty of an offence and shall be liable to a fine not exceeding one thousand rupees, and shall also be liable for any damage which the person so elected or appointed may sustain from the default, but the liability of the person elected or appointed shall not be affected by the default. |
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Sri Lanka Consolidated Acts