Cap. 6:07
INSOLVENCY
No. 7/2018
(II) If a person contemplated in subsection (I 0) obtains judgment in respect
of a debt contemplated in that subsection, the amount of the judgment must be added
to the list of proved debts.
( 12) A creditor may by \Vritten pmver of attorney authorise any person to appear
at a hearing on his or her behalf and to do everything at such hearing which the creditor
would have been entitled to do.
( 13) The hearing may be deferred by the administrator, and the proposed
composition may be amended or revoked with the permission of the debtor.
(14) A composition may not be accepted if a creditor demonstrates to the
satisfaction of the administrator that it accords a benefit to one creditor over another
creditor to which he or she would not have been entitled on liquidation of the debtor's
estate.
( 15) If the composition is accepted by the majority in number and two-thirds in
value of the concurrent creditors who vote on the composition, the administrator must
send a certificate that the composition has been accepted as such by standard notice
to the Master and creditors, and thereafter the composition is binding on all creditors
who recei,·ed notice of the hearing or who appeared at the hearing, but the right of a
secured or otherwise preferent creditor is not prejudiced by the composition, unless he
or she consents to the composition in writing.
(16) The administrator must within six months after the acceptance of
the composition and every six months thereafter until the composition has been
implemented, send an account of receipts, expenses and payments by standard notice
to creditors and the Master.
( 17) If the Master is of the opinion that the account is in any respect incorrect
or that it contains any improper charge or that the liquidator acted mala .fide, negligently
or unreasonably in incurring any costs included in the account and that the account
should be amended, the Master may direct the administrator to amend the account or
may give such other direction in connection therewith as he or she may think fit.
(18) The provisions of sections 94, 95, 96, 97(5), 97(7), 97(10), 97(11) and
192 applies with the necessary changes to an administrator.
( 19) If the composition provides for payments by the debtor in determined instalments or otherwise, the acceptance of the composition has the effect of an order in
terms of section 18 of the Magistrates Courts Act [Chapter 7: 10] and shall be enforced
by the Court upon registration by the interested party, in respect of the payments.
(20) Any person who in terms of the composition receives the payments on
behalf of creditors, or if there is no such person, any creditor who is in terms of the
composition entitled to a benefit out of the payments, has the rights which a judgment
creditor would have in terms of that section.
(21) The administrator is entitled to the remuneration which is payable in terms
of the composition.
(22) The administrator may(a)
at any time on application by the debtor or an interested person direct the
debtor to appear for such further questioning as the Court may consider
necessary, after standard notice to creditors of at least l...J. days by the
debtor or the interested person, as the case may be;
(b)
revoke the composition for reasons contemplated in subsection (23);
(c)
authorise a debtor \Vho on reasonable grounds is not able to comply with
his or her obligations in terms of the composition to lodge an amended
composition to creditors in the manner and \\'ith the consequences
contemplated in subsection (1).
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