Apr 16, Colombo: Sri Lanka has enacted a new Company Act No. 07 of 2007 to safeguard the interest of all stakeholders including directors, major shareholders, minority shareholders, and creditors.
Under this new act, all companies will have to reregister within a period of one year, the government said. The No. 07 of 2007 Company Act will repeal the previous 1982 No. 17 Company Act, Act No. 19 of 1974, and Foreign Companies (Special Provisions) Law No. 09 of 1975. The act went into full effect on April 1, 2007.
The new legislation has a “simplified and modernised concept” that eliminates the Memorandum of Association, the recognition of private companies, public companies and listed limited liability public companies. The concept of a people’s company will be withdrawn and existing people’s companies will be considered as limited companies.