66. Where any shares of a company are issued for the purpose of raising money to defray the expenses of the constructor; of any works or buildings or the provision of any plant which cannot be made profitable for a long period of time ., the company may pay interest on so much of that sharp capital as is for the time being paid up for the period and subject to the conditions and restrictions set out in this section and may charge the sum so paid by way of interest to capital as part of the cost of construction of the work or building, or the provision of the plant, as the case may be : Provided that
| (a) no such sum shall be paid unless it is authorized by the articles or by special resolution ; |
|
| (b) no such sum, whether authorized by the articles or by special resolution, shall be paid without the Previous sanction of the court; |
|
| (c) before sanctioning the payment of any such sum, the court may at the expense of the company, appoint a person to inquire and report to the court as to the circumstances of the case, and may, before making the appointment, require the company to give security for the payment of the costs of the inquiry; |
|
| (d) the payment shall be made only for such period as may be determined by the court, and that period shall in no case extend beyond the close of the half-year next after the half-year during which the works or buildings have been actually completed or the plant provided, as the case may be ; |
|
| (e) the rate of interest shall in no case exceed such rate as may for the time being be prescribed by regulation ; |
|
| (f) the payment of the interest shall not operate as a reduction of the amount paid up on the shares in respect of which it is paid. |
|
|
Sri Lanka Consolidated Acts