Legal & Corporate Governance Compliance
Lux Residencies Pvt Ltd’s operations are firmly anchored in legal compliance and sound corporate governance. The company’s incorporation and business practices strictly follow the Companies Act, No. 07 of 2007. Key legal clauses and governance elements include:
Incorporation and Naming
In accordance with section 6 of the Companies Act, every private company in Sri Lanka must have a name ending with “(Pvt) Ltd”. Lux Residencies Pvt Ltd complies with this requirement, and its incorporation certificate clearly details its legal status as a private limited company.
Articles of
Association
The company’s Articles of Association, as mandated by section 13 and further elaborated in sections 14 to 17 of the Companies Act, establish the governing framework. These articles define the objects of the company, the rights and obligations of shareholders, and the operational guidelines that ensure transparent and effective management.
Investor Protection and Profit Distribution
The investor agreement incorporates specific clauses regarding profit distribution, ROI calculations, and exclusive room benefits. These contractual terms are crafted to meet the legal standards outlined under sections related to share allotment and dividend distribution, ensuring that all financial benefits are legally enforceable.
Public Disclosure and Transparency
The company adheres to public disclosure requirements under section 9 of the Companies Act by ensuring that its registered office details, company number, and other statutory information are clearly displayed in all official documents and communications. This commitment to transparency fosters trust among investors, clients, and regulatory bodies.
Contractual Validity and Execution
All contracts, including those pertaining to investor benefits and pre-incorporation agreements, are executed in accordance with section 19 of the Companies Act. By ensuring that contracts are signed by authorized directors and notarized where necessary, Lux Residencies maintains the highest standards of contractual integrity.