Sri Lanka Consolidated Acts

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Companies Act (No. 17 of 1982) - Sect 55

Prohibition of provisions of financial assistance by company for purchase of or subscription for its own or its holding company's shares

55.
(1) Subject as provided in this section, it shall not be lawful for a company to give, whether directly or indirectly, and whether by means of a loan, guarantee, the provision of security or otherwise, any financial assistance for the purpose of or in connection with a purchase or subscription made or to be made by any person of, or for any shares in, the company, or, where the company is a subsidiary company, in its holding company :
(2) Where a company acts in contravention of the provisions of this section, 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 one thousand rupees.

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