Act Nos,
19 of 1957
[28th March
, 1957
Short title.

1 This Act may be cited as the Automobile Association of Ceylon (Incorporation) Act.

Incorporation of the Automobile Association of Ceylon.

2. The persons who, at the time of the coming into operation of this Act, are members of the Automobile Association of Ceylon (hereinafter referred to as “the association”) and such other persons as are hereafter enrolled as members of the association shall be a body corporate (hereinafter referred to as “the corporation”) with perpetual succession and a common seal and the name “The Automobile Association of Ceylon”. The corporation may sue and be sued by that name.

Objects of the corporation.

3. The objects of the corporation shall be

(a) to encourage and maintain an active interest in motoring in Sri Lanka and to protect and advance the legitimate interests of motorists and aviators, the motor and aviation industries and owners and users of all forms of mechanically propelled vehicles on land or water or in the air and any industry connected therewith,

(b) to assist in the enforcement of the laws affecting highways and the users thereof,

(c) to secure equitable administration of matters affecting the rights of motorists and the enforcement of laws affecting all road users, and

(d) to watch all proposed legislation in any way bearing upon the interests of motorists and to secure, as far as practicable, that the principles involved therein shall be equitable alike to motorists and the other members of the public-

Register of members.

4. The committee administering the affairs of the corporation shall cause a register of members of the corporation to be kept. There shall be inscribed in such register the name of every person who, at the date of the coming into operation of this Act, is a member of the association and the name of every person who is thereafter duly enrolled as a member of the association.

Rules of the corporation.


(1) The corporation may, from time to time, at any general meeting of the members and by a majority of votes, make such rules as it may deem expedient for the management of the affairs of the corporation and the accomplishment of its objects.

(2) Any rule of the corporation may be amended or rescinded in like manner as a rule may be made under subsection (1).

(3) The articles of the association in force when this Act comes into operation shall be deemed to be the rules of the corporation made under this section and may accordingly be amended or rescinded and be replaced by new rules so made.

(4) The members of the corporation shall be subject to the rules of the corporation.

Sums payable by or to the association to be paid by or to the corporation.

6. All debts and liabilities of the association existing at the time of the coming into operation of this Act shall be paid and discharged by the corporation, and to the all debts, subscriptions, contributions, and fines due or payable to the association shall be paid to the corporation.

Seal of the corporation.

7. The seal of the corporation may be altered at the pleasure of the corporation. It shall not be affixed to any instrument whatsoever except by the authority of a resolution of the committee administering the affairs of the corporation and in the presence of two members of that committee, or one member of that committee and the secretary of the corporation, who shall sign their names on the instrument in token of their presence, and such signing shall be independent of the signing of any person as a witness.

The corporation may acquire, hold and dispose of property, and borrow money.

8. The corporation-

(a) may acquire and hold any movable or immovable property by right of purchase, grant, gift, testamentary disposition or otherwise,

(b) shall hold any property subject to the rules of the corporation,

(c) may sell, mortgage, lease, exchange or otherwise dispose of any of its properties, and

(d) borrow money for the purposes of the corporation.

Application of property of the corporation.

9. The income and property of the income and corporation shall be applied solely towards the promotion of the objects of the corporation and no portion thereof shall be paid or transferred directly or indirectly by way of dividend, bonus, or otherwise by way of profit, to the members of the corporation: Provided that nothing in the preceding provisions of this section shall prevent-

(a) the payment of reasonable and proper remuneration to any officer or servant of the corporation who is not a member of the committee administering the affairs of the corporation, or to any member of the corporation who is not a member of such committee for any services rendered to the corporation,

(b) the payment of interest at a rate not exceeding five per centum per annum on money lent, or reasonable and proper rent for premises let, by any member to the corporation, and

(c) the payment, with the consent of seventy-five per centum of the members of such committee, to any member of such committee, or to any company or firm of which any member of such committee is a member or partner, for any work or services done or rendered for or to the corporation.

Disposal of property of the corporation left after the payment of debts upon dissolution of the corporation.

10. If upon the dissolution of the corporation there remains, after the satisfaction of all its debts and liabilities, any property (including money), such property shall not be distributed among the members of the corporation, but shall be transferred to some other institution or institutions which has or have objects similar to the objects of the corporation and which is or are by rules or articles of association or otherwise prohibited from distributing its or their income and property amongst its or their members to an extent at least as great as is imposed on the corporation by this Act. Such institution or institutions shall be determined by the members of the corporation at or before the time of the dissolution of the corporation or, in default thereof, by a court within the local limits of whose civil jurisdiction the whole or any part of such property is held or situate. If such property or any part thereof cannot be disposed of in accordance with the provisions of this section, such property or part shall be applied to some charitable object.

Liability of members of the corporation.

11 No member of the corporation shall, for the purpose of discharging the debts and liabilities of the corporation, be liable to make any contribution exceeding the amount of such annual subscriptions as may be due from him to the corporation and an additional sum of not more than one rupee.

Saving of the right of the Republic and others.

12. Nothing in this Act shall prejudice or affect the rights of the Republic, or of any body corporate, or of any other persons, except such as are mentioned in this Act and those claiming from or under them.