A full-power authority to straighten out failing businesses

Several ministries and institutions are to jointly establish a full-power authority to carry out regulatory work related to the revival of failing businesses.

One representative each from the Ministries of Finance, Justice and Trade, a representative from the Securities and Exchange Commission of Sri Lanka, a representative each from the Registrar of Companies, the Commissioner General of Inland Revenue and the Governor of the Central Bank, as well as two members of the Ceylon Chamber of Commerce will also be appointed as members of this authority. In addition, five members with experience and knowledge in the fields of taxation, accounting, banking and law will also be appointed from outside the institutions and applications will be invited for the recruitment of these five, the Ministry of Industry and Entrepreneurship Development states.

This authority will be managed under a Director General.  The authority is entrusted with twenty tasks, including making recommendations regarding the revival of failing businesses. The ministry also points out that this regulatory authority is appointed in accordance with the “Rescue, Rehabilitation and Insolvency” Act, which was passed in Parliament last week.

With the passage of this Act, the Insolvency Ordinance, 1853, will be repealed and the Companies Act, No. 7 of 2007, the Inland Revenue Act, No. 24 of 2017 and the Mediation Board Act, No. 72 of 1988 will also be amended

Source: Daily News