The new companies act came into effect on May 03, 2007. It aims to improve Sri Lanka's corporate management practices and reduce the incidence of mismanagement.
Some say this is a draconian law but I do not call it so. Things are changing, globally it has happened. In Sri Lanka it is happening, Cabraal said.
Because of over trading, asset stripping, siphoning of funds, major corporate collapses a need arose to streamline (corporate management practices) and arrest this problem.
Cabraal was speaking at a symposium on the Companies Act organized by Hayleys AIG Insurance for the corporate sector.
The need for stringent laws has been evolv