2.
| (1) Subject to the provisions of section 3, no finance business shall be carried on except by a public company which
| | (a) is registered under the Companies Act, No. 17 of 1982; and | | |
| | (b) has a minimum issued and paid up capital of not less than five million rupees; and | | |
| | (c) is registered under the provisions of this Act. | | |
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| (2) Every application for registration under this Act by a company shall be made to the Board in the prescribed form, and shall contain a declaration by the applicant that the particulars stated in the application are, to the knowledge and belief of the applicant, true and accurate, |
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| (3) Every person who makes any declaration, or furnishes any information under subsection (2), knowing the same to be false, shall be guilty of an offence under this Act, |
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| (4) Where an application Is made to the Board for registration under this Act, the Board may call for and examine or cause to be examined, the books, records and documents of the company applying for registration. |
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| (5) The Board may, on considering an application made to it by a company for registration under the Act, register such company as a finance company if it is satisfied that
| | (i) the requirements of subsection (1) of this section have been compiled with ; and | | |
| | (ii) on the information made available to it, that it, registration would not be detrimental to the interests of its depositors and creditors. | | |
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| (6) Where a company is not registered under subsection (5), or a person or a body of persons to whom section 3 is applicable, has failed to comply with the provisions of that section, the Board may issue to such company, a person or body of persons as the case may be directions for winding up or for divesting the finance business carried on by it and for the settlement of its deposit liabilities and it shall be the duty of such company or person or body of persons to comply with such direction. |
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| (7) Where a company or person or a body of persons fails to comply with directions issued under subsection (7) within one month of the issue of such directions, the Board may require the Director to take such action as may be necessary, to secure compliance therewith including filing action for winding up in which event the provisions of section 18 shall apply. |
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Sri Lanka Consolidated Acts