Sri Lanka Consolidated Acts

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Insurance (Special Provisions) Act (No. 22 of 1979) - Sect 3

Incorporation Order for the establishment of an independent corporation

3.
(1) Where the Minister considers it desirable that an independent corporation should be established, in addition to the Insurance Corporation and its subsidiaries, to carry on the business of any description of insurance as specified in the Incorporation Order, he may with the approval of the Government by Order (hereinafter referred to as "the Incorporation Order ") published in the Gazette.
(a) declare that an independent corporation be establish- ed for the purpose of carrying on the business of insurance of any description as may be specified in such Order ;
(b) assign a corporate name to such independent corporation ;
(c) determine the initial capital of the independent corporation which shall not exceed such amount as shall have been approved by Parliament;
(d) state the principal place of business of such independent corporation;
(e) fix the number of members of the Board of Directors of such independent corporation ;
(f) appoint the members of the Board of such independent corporation in accordance with the provisions of section 8;
(g) appoint one of the members of the Board as its Chairman;
(h) appoint the date such independent corporation shall commence business.
(2) Upon the publication of the Incorporation Order in the Gazette, an independent corporation consisting of the persons who are for the time being members thereof by virtue of section 7, with the corporate name specified in such Order and with perpetual succession, shall be deemed to have been established.
(3) An independent corporation may sue and be sued in its corporate name.
(4) The amount of the initial capital of an independent corporation shall be paid to such corporation out of the Consolidated Fund in such instalments as the Minister in charge of the subject of Finance may with the concurrence of the Minister determine.

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