AIR CEYLON acT

Arrangement of Sections

1. Short title.

PART I

Establishment and Powers of Corporation, Membership, and Capital

2. Establishment of "Air Ceylon” Corporation.

3. Functions and powers of the Corporation.

4. Control of Minister over certain activities.

4A. Power of the Minister to issue directions to the Corporation.

5. Capital.

6. Government contribution of capital.

7. Commencement of business.

8. Person who may execute documents and make payments on behalf of Government.

9. Appointment of members of the Corporation.

10. Term of office.

11. Vacation of office.

12. Remuneration, of members of Corporation.

PART II

General Provisions for Conduct of Business

13. Custody and use of common seal.

14. Appointment and remuneration of officers.

15. Contracts.

16. Bills of exchange and promissory-notes.

17. Execution of deeds abroad.

18. Receipts when valid.

19. Delegation of functions of Corporation.

20. Application of law relating to carriage by air and aerial navigation.

21. Accounts of Corporation.

22. Audit of accounts.

23. Application of moneys of Corporation.

24. Investment of moneys.

25. Reserves.

26. Payments to Consolidated Fund.

27. Repealed.

28. Minister may request Corporation to operate service.

29. By-laws.

30. Transfer of existing Air Ceylon assets to Corporation.

31. Company law not to apply to Corporation.

32. Power of Governor-General in emergency.

PART III

Agreement for Participation in Undertaking of Corporation

33. Agreement for participation.

34. Application of this part.

35. Participant's contribution of capital.

36. Government and participant to be shareholders in Corporation.

37. Restriction on sale of shares of participant.

38. Acquisition by Government of participant's shares.

39. Valuation of participant's shares.

40. Payment for shares acquired or purchased by Government.

41. Purchase of aircraft, equipment, and hiring of aircraft from participant.

42. Additional members of Corporation may be nominated by participant.

43. Nomination of General Manager by participant.

44. Operations committee.

45. Restriction on increase of capital.

46. Provision for payment of dividends.

47. Employment of Ceylonese personnel.

7 of 1951,

18 of 1965,

40 of 1971.

AN ACT to establish a Corporation for the operation of air transport services, to provide for government investment in its capital and generally to prescribe and regulate the functions and powers of the Corporation

[Date of Commencement: 15th March, 1951]

1. Short title.

This Act may be cited as the Air Ceylon Act.

PART I

Establishment and Powers of Corporation, Membership, and Capital

2. Establishment of "Air Ceylon” Corporation.

(1) There shall, on the appointed date or as soon as may be thereafter, be established a corporation to be called and known as "Air Ceylon Limited”.

(2) The corporation shall consist of the persons for the time being holding office as members thereof in accordance with the provisions in that behalf contained in this Act.

(3) The corporation shall have perpetual succession and a common seal and may sue and be sued in its corporate name.

(4) The corporation shall have power to acquire and hold land and to dispose of land so acquired or held.

(5) The head office of the corporation shall be at Colombo or at such other place in Ceylon as may be approved by the Minister in that behalf.

3. Functions and powers of the Corporation.

(1) It shall be the duty of the corporation, subject as hereinafter provided, to secure the fullest development, consistent with economy, of efficient air transport services to be operated by the corporation and to secure that such services are operated at reasonable charges.

(2) The corporation is hereby empowered and authorised, subject as hereinafter provided, either in connection with the discharge of their duty under the preceding subsection or as an independent activity—

(a) to operate air transport services in Ceylon or to and from Ceylon, including intermediate points, or otherwise howsoever, whether scheduled, non-scheduled or on charter terms;

(b) to undertake flights for the purposes which the corporation may consider necessary, including purposes of aerial survey;

(c) to undertake and make arrangements for the instruction and training in matters connected with air transport of persons employed, or desirous of being employed, whether as pilots or in any other capacity, either by the corporation or by other persons; and

(d) to carry out maintenance, repair and overhaul of aircraft.

(3) The corporation shall have power, subject as hereinafter provided, to do anything which is calculated to facilitate the discharge and performance of the functions and duties conferred or imposed by the preceding provisions of this section or which is incidental or conducive thereto, including in particular, but without prejudice to the generality of those provisions, power—

(a) to acquire or hire aircraft, and to acquire parts of aircraft and aircraft equipment and accessories;

(b) to acquire, establish and maintain aerodromes, landing grounds, sea-dromes, river-dromes, and flying-boat bases in Ceylon or elsewhere;

(c) to acquire, establish and maintain buildings and maintenance, repair and overhaul shops;

(d) to acquire lights, beacons, wireless installations and other plant and equipment;

(e) to manufacture parts of air-frames and of aero-engines and aircraft equipment and accessories;

(f) to sell, let or otherwise dispose of any property belonging to them and not in their opinion required for the proper discharge of their functions;

(g) to transport passengers, goods and mails and to impose and recover charges for such transport;

(h) to enter into contracts with the Postmaster-General for the transport of mails by air upon terms to be provided for in such contracts;

(i) to enter into arrangements, agreements or contracts for establishing or maintaining air transport services to be operated, in collaboration with the corporation or otherwise, by other persons, or any arrangement for the pooling of receipts or profits with other persons operating air transport services;

(j) to act as agents for any other undertaking engaged in the provision of air transport services, or in other activities of a kind which the corporation has power to carry on;

(k) to provide accommodation for passengers, crew and other personnel in hotels or otherwise, and facilities for their transport to or from aerodromes, and for the collection, delivery and storage of baggage and freight; and to make, with persons carrying on the business of providing any facilities for passengers, crew or other personnel or freight, in connection with air transport services, arrangements for the provision of such facilities;

(l) to acquire any undertaking engaged in the provision of air transport services or in other activities of a kind which the corporation has power to carry on, or to acquire, hold or have any shares or stock of, or any financial interest in, any such undertaking;

(m) to carry out experimental work, and conduct, promote and encourage education and research in matters connected with any of their functions under this Act;

(n) to acquire land or buildings and to establish and maintain hotels, restaurants and similar establishments for any purposes herein before specified;

(o) to acquire and maintain all such plant, machinery, vehicles and other goods or equipment as may be required for any of the purposes herein before specified;

(p) to carry on the business of the purchase and sale of goods and commodities;

(q) to appoint such advisory boards or committees, and such local boards or committees, with such executive or other functions and upon such terms as to remuneration and otherwise, as the corporation may deem expedient;

(r) to enter into agreements with the Government of any country.

(4) The Minister may by Order authorise the corporation, subject to such conditions as may be specified in the Order, to carry on any undertaking or business or to do any act or thing not mentioned in the preceding provisions of this section, if he is satisfied that it is expedient so to do for purposes connected with the efficient discharge and performance of the powers and duties conferred or imposed on the corporation by such preceding provisions.

(5) Every Order made under subsection (4) shall be brought before the Senate and the House of Representatives for approval, and if so approved shall be published in the Gazette, and come into force on the date of such publication.

4. Control of Minister over certain activities.

The corporation shall not, except with the approval of the Minister, or in accordance with the terms of any general authority given by him—

(a) undertake any flight for the purpose of aerial survey, except in connection with the development of an air transport service operated or proposed to be operated by the corporation; or

(b) exercise any of the powers conferred on the corporation by paragraph (i) or (p) or (q) of subsection (3) of section 3 of this Act, or, except in relation to persons employed, or desirous of being employed, by the corporation, the power conferred on them by paragraph (c) of subsection (2) of that section.

4A. Power of the Minister to issue directions to the Corporation.

The Minister may from time to time, either of his own motion or after consultation with the corporation, give to the corporation in writing general or special directions as to the performance of its duties and the exercise of its powers, and the corporation shall give effect to such directions.

[S 4A ins by s 2 of Act 40 of 1971.]

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