Sri Lanka Consolidated Acts Sri Lanka Consolidated ActsEffect of floating charge
| 350. Where a company is being wound up, a floating charge on the undertaking or property of the company created within twelve months of the date of commencement of the winding up, shall, unless it is proved that the company immediately after the creation of the charge was solvent, be invalid, except to the amount of any cash paid to the company at the time of, or subsequently to the creation of. and in consideration for, the charge, together with interest per annum on that amount at the legal rate: Provided that, in relation to a charge created more than six months before the appointed date, the provisions of this section shall have effect with the substitution, for the words " twelve months ", of the words " six months ". |