The Sri Lankan Parliament has passed the Companies (Amendment) Act, No. 23 of 2024, marking a significant step towards modernizing corporate regulations in the country.
The Companies (Amendment) Act, No. 23 of 2024, is expected to streamline business processes, enhance transparency, and foster a more conducive environment for investment and economic growth in Sri Lanka.
- The Act replaces references to the Registration of Documents Ordinance (Cap.117) with provisions from the Secured Transactions Act, No. 17 of 2024, streamlining secured transaction procedures.
- Subsection (4) of Section 428 of the Companies Act, No. 07 of 2007, is repealed, and a new subsection (7) is added to Section 431, emphasizing the application of priority rules from the Secured Transactions Act, No. 17 of 2024, to floating charges.
- A new section, 433A, is inserted after Section 433 of the principal enactment, providing clarification on the interpretation of the term “floating charge” within the context of the Secured Transactions Act, No. 17 of 2024.
Link to the new Act –
English Version http://documents.gov.lk/files/act/2024/4/23-2024_E.pdf
Sinhala Version http://documents.gov.lk/files/act/2024/4/23-2024_S.pdf
