Economic Crimes: Take Early Steps To Initiate Proposed Company Law Reforms: Chandra Jayaratne
“In the light of serious economic crimes believed to have taken place over the last two decades, as ascertained from investigations and media exposes, purportedly challenging to a significant extent the macro-economic growth, stability, sovereign ratings and solvency of the state, state owned enterprises and selected key private sector businesses, along with a host of innocent citizens, it is an urgent priority,” says a former President of the Ceylon Chamber of Commerce and good governance activist, Chandra Jayaratne.
Chandra Jayaratne
Writing to the leadership team, Jayaratne urged them to take early steps to initiate the proposed Company Law Reforms.
We publish below the letter in full:
To:
Secretary, Ministry of Industry & Commerce,
Registrar General of Companies,
Governor of the Central Bank,
Chairman, Securities Exchange Commission,
Chairman / Secretary START,
Chairman, Ceylon Chamber of Commerce,
President, Bar Association of Sri Lanka,
President, Institute of Chartered Accountants of Sri Lanka,
Chairperson, Sri Lanka Institute of Directors,
K. Kanag-Ishvaran P.C. Chairman of Company Law Advisory Committee,
Registrar General of Companies,
Governor of the Central Bank,
Chairman, Securities Exchange Commission,
Chairman / Secretary START,
Chairman, Ceylon Chamber of Commerce,
President, Bar Association of Sri Lanka,
President, Institute of Chartered Accountants of Sri Lanka,
Chairperson, Sri Lanka Institute of Directors,
K. Kanag-Ishvaran P.C. Chairman of Company Law Advisory Committee,
Priority Company Law Reforms Requiring Leadership Attention: Expanding the Provisions of Part XXI-Offences-of the Companies ActNo.7 of 2007
In the light of serious economic crimes believed to have taken place over the last two decades, as ascertained from investigations and media exposes, purportedly challenging to a significant extent the macro-economic growth, stability, sovereign ratings and solvency of the state, state owned enterprises and selected key private sector businesses, along with a host of innocent citizens, it is an urgent priority, that in addition to
* the early enactment of the proposed Proceeds of Crime Act, and
* effective enforcement by law enforcement agencies of the penal provisions of existing laws and regulations against offenders of serious economic crimes, and,
* Business Chambers and Professional Association taking steps to enforce ethical professional conduct by their respective memberships, with the imposition of stern disciplinary action upon failure by members in assuring due compliance with laws and regulations (NOCLAR)
that by appropriate Company Law Reforms, the Provisions of Part XXI-Offences-of the Companies Act No.7 of 2007 be expanded/amended without delay.
that by appropriate Company Law Reforms, the Provisions of Part XXI-Offences-of the Companies Act No.7 of 2007 be expanded/amended without delay.
It is recommended that a multi-stakeholder group of nominees representing each of you, be charged with the responsibility of jointly developing the essential amendments to Part XXI-Offences-of the Companies ActNo.7 of 2007and thereafter progress with leadership commitment the effective implementation of the agreed reform agenda.
The Stakeholder Group is urged to consider the expansion/amendment of the Provisions of Part XXI-Offences-of the Companies ActNo.7 of 2007 to include the following recommendations:
· Where any Company registered under the Act has engaged in any serious economic crimes associated with money laundering, transfer pricing, tax avoidance, bribery, corruption, illegal transfer of state property, securities offenses, smuggling, trading in narcotics and dangerous substances, cross border illegal transfers of currency/gems/precious metals, the violation of regulations governing the management of foreign exchange, and or the violation of any written law for the time being in force relating to offences connected with the Poisons, Opium and Dangerous Drugs Ordinance (Chapter 218); the prevention and suppression of terrorism; the Bribery Act (Chapter 26); the Firearms Ordinance (Chapter 182); the Explosives Ordinance (Chapter 183); the Offensive Weapons Act, No. 18 of 1966; or an offence under the Banking Act, No. 30 of 1988;and any law for the time being in force relating to transnational organized crime; cyber crime: the Prevention of Money Laundering Act, No. 5 of 2006 ; offences against children; trafficking or smuggling of persons; the Customs Ordinance (Chapter 235) and any Regulation, Rule or Order made there under; the Excise Ordinance (Chapter 52) and any Regulation, Rule or Order made there under; the Payment Devices Frauds Act, No. 30 of 2006 and any Regulation, Rule or Order made there under; the National Environmental Act, No. 47 of 1980 and any Regulation, Rule or Order made there under;
every person who at the time of the commission of the offence was a director, secretary or other similar officer of the Company; or any person acting for or ‘on behalf of such a person’ shall be deemed to have committed an offense under this Act and upon conviction shall prevented by the Registrar of Companies from functioning as a director, secretary, officer or auditor of any company registered under the Act
every person who at the time of the commission of the offence was a director, secretary or other similar officer of the Company; or any person acting for or ‘on behalf of such a person’ shall be deemed to have committed an offense under this Act and upon conviction shall prevented by the Registrar of Companies from functioning as a director, secretary, officer or auditor of any company registered under the Act
