20.
| (1) If the Board after review of the facts and circumstances upon the receipt of a report by the Director under section 18 is of opinion that a finance company may be made a solvent and viable by action as hereinafter provided, it may by a notice published in the Gazette take over the administration and management of a finance company for such period as may be specified in such notice. The Board may by a subsequent Notice published in the Gazette extend the period specified in the original notice. The Board shall cause copy of every such notice to be sent to the Registrar of Companies who shall make a minute thereof in the books relating to the company. |
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| (2) Where the Board takes over the administration and management of a finance company the Board may
| | (a) exercise, perform and discharge with respect to such finance company all the powers, duties and Functions conferred or imposed on, or assigned to, the Board of Directors of such company by or under any written law or by the articles of association of such company. | | |
| | (b) enter into any agreement with any person, or body of persons for the management of the finance company subject, to such conditions as may be agreed upon between the Board and such person or body of persons having regard to the interests of the depositors and creditors of the company and in the public interest. | | |
| | (c) make such arrangements as it considers necessary for the amalgamation of the finance company with another finance company or any other institution with the consent of such other finance company or institutions. | | |
| | (d) re-organise such finance company by increasing its capital, arranging for new shareholders, and by re-constituting its Board of Directors. | | |
| | (e) reconstruct the finance company in any such manner as it considers to be in the interest of depositors; or | | |
| | (f) direct any shareholder of any finance company to divest or transfer the ownership of any shares owned by him to a person nominated by the Board on payment by such person of compensation determined as follows
| | | (i) where such shares are quoted, at the market value thereof; or |
| (ii) where such shares are not so quoted, at a price to be determined by a valuer nominated by the Board. |
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| (3) During the period for which the administration and management of a finance company is taken over by the Board, every director, manager and secretary of such finance company shall, unless expressly authorized" to do so by the Board, cease to exercise, perform and discharge any powers, duties and functions with respect to such company. |
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| (4) Where the administration and management of a finance company is taken over by the Board under sub section (1), the Board may where it considers it in the public interest to do so
| | (a) arrange for or grant, such financial accommodation as it may consider necessary to the finance company by way of loans or other accommodation, other than by way of grants; and | | |
| | (b) meet all costs, charges and expenses incurred in the administration and management of the company: | | |
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Sri Lanka Consolidated Acts