Work on drafting a fresh piece of legislation to replace the present Companies Act is due to get off the ground next week.
The committee, which includes legal luminaries, like Aritta Wikremanayake, Dr. Harsha Cabraal, representatives from trade chambers, accounting bodies and the Bar Association, have been set a three months deadline to draw up a fresh Act, to keep in line with English law.rn
rnThe draft Companies Act, which was debated for over ten-years, was tossed out at Cabinet level last month, over its departure from English Law principles.rn
rnldblquote When we presented the draft Act after 16 months of fast tracking it, the Prime Minister said it goes against the English Law practiced in the country. He felt that only lawyers will make money, the corporate world will be a mess, and it will also frighten off certain investors, dblquote Commerce & Consumer Affairs Minister, Ravi Karunanayake said addressing members of the Institute of Chartered Accountants Sri Lanka.rn
rnThe draft Companie