198.
| (1) Every company shall keep a register showing as respects each director of the company (not being its holding company) or the spouse or son or daughter of such director as the case may be, the number, description and amount of any shares in or debentures of the company or any other body corporate, being the company's subsidiary or holding company, or a subsidiary of the company's holding company, .which are held by or in trust for or of which such director or the spouse, son or daughter of such director has any right to become the holder (whether on payment or not) : |
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| (2) Where any shares or debentures fail to be or cease to be recorded in the said register in relation to any director or the spouse, son or daughter of such director by reason of a transaction entered into on or after the appointed date and while he is a, director, the register shall also show the date of and price or other consideration for the transaction : |
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| (3) The nature and extent of the interest or right of the director, or the spouse, son or daughter of such director in or over any shares or debentures recorded in relation to a loan on the said register shall,, if he so requires, be indicated in the register. |
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| (4) The company shall not, by virtue of anything dons for the purposes Of this section, be affected with notice of, or put upon inquiry as to the rights of, any person in relation to any shares or debentures, and the provisions of section 114 shall, notwithstanding anything in this section contained, have full force and effect. |
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| (5)The said register shall, subject to the provisions left this section, be open to inspection during business hours (subject to such reasonable restrictions as the company may by its articles or in general meeting impose), so that not less than two hours in each day be allowed for inspection, as follows:
| | (a) during the period beginning fourteen days immediately prior to the date of the annual general meeting of the company and ending three days immediately after the date of its conclusion, it shall be open to the inspection of any member or holder of debentures of the company; and | | |
| | (b) during that or any other period, it shall be open to the inspection of any person acting on behalf of the Registrar. | | |
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| (6) Without prejudice to the rights conferred by the provisions of subsection (5), the Registrar may at any time require a copy of the said register, or any part thereof. |
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| (7) The said register shall also be produced at the commencement of the annual general meeting of the company and remain open and accessible during the continuance of the meeting to any person attending the meeting. |
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| (8) Where default is made in complying with the pro visions of subsection (7), the company and every officer of the company who is in default shall be guilty of an offence and shall be liable to a fine not exceeding five hundred rupees, and (8)where default is made in complying with the provisions of subsection (1) or subsection (2), or where any inspection required under the provisions of this section is refused or any copy required thereunder is not sent within a reasonable time, the company and every officer of the company who is in default shall be guilty of an offence and shall be liable to a fine not exceeding five thousand rupees and further to a fine of two hundred and fifty rupees for every day during which the default continues. |
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| (9) Where any inspection required under the provisions of subsection (7) is refused unreasonably, the court may by order compel an immediate inspection of the register. |
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| (10) For the purposes of this section
| | (a) any person in accordance with whose directions or instructions the directors of a company are accustomed to act shall be deemed to be a director of the company ; | | |
| | (b) a director of a company shall be deemed to hold or to have an interest or right in or over, any shares or debentures, if a body corporate other than the company holds them or has that interest or right in or over them, and either
| | | (i) that body corporate or the directors are accustomed to act in accordance with his directions or instructions ; or |
| (ii) he is entitled to exercise or control the exercise of one-third or more of the voting power at any general meeting of that body corporate. |
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Sri Lanka Consolidated Acts