Cap. 6:07
INSOLVENCY
No. 7/2018
(2) Part XXIII of this Act, with the exception of sections, 123(2), 130(1). (5)
and (6), 133(3)(b), 136(3)(b), 139, 142(2)(b)(vii), 144(3)(b) and (c); 144(6) and (7),
and section 149 read with the changes required by the context, applies to a debtor other
than a company, but(a)
a reference to a company or a director, board. management or officer of
a company, must be regarded as a reference to a debtor, or the estate, or
affairs of a debtor;
(b)
a reference to "shareholder", "equity'', "in existence" or "conversion of
debt to equity" must be ignored;
(c)
section 123(5)(c)(ii) must be read as follows: "if the Court has found that
there were no reasonable grounds for believing that the debtor would be
unlikely to pay all of its debts as they became due and payable, an order
of costs against the debtor, unless the Court is satisfied that the debtor
acted in good faith and on the basis of information that the debtor was
reasonably entitled to rely upon.";
(d)
section 124(8)(a) must be read as follmvs: "may not apply for liquidation
of the estate of the debtor until the corporate rescue proceedings have
ended as determined in accordance with section 150(2); and";
(e)
section 131 (1 )(c) must be read as follows: "would not be disqualified from
acting as a director in terms of the Companies Act [Chapter 24:31 ]";
(f)
section 133(l)(a), (b) and (c) must be read as follows: "During a debtor's
corporate rescue proceedings, the practitioner, in addition to any other
powers and duties set out in this Chapter(a)
has full management control of the debtor's affairs in substitution
for its pre-existing management;
(b)
may delegate any power or function of the practitioner to a person
who was part of the pre-existing management of the debtor;
(c)
may appoint a person as part of the management of a debtor, whether
to fill a vacancy or not, subject to subsection (2); and".
PART XXIV
OFFENCES
149 Offences
(I) A debtor or the management of a debtor is guilty of an offence if he or she(a)
conceals or parts with or intentionally destroys any book or accounting
record relating to the affairs of the debtor or intentionally erases the
information contained therein or makes it illegible or permits any other
person to perform any· such act with regard to any such book or accounting
record; or
(b)
alienates property, obtained by him or her or the estate on credit and not
paid for, otherwise than in the ordinary course of business; or
(c)
despite having been expressly asked about his or her or the debtor's
financial standing and credit worthiness, falsely conceals his or her or the
debtor's insolvent status and as a result thereof obtains credit for more
than $50: or
(d)
offers or promises to any person a reward in order to procure the acceptance
by a creditor of an offer of compromise or to give up any investigation
with regard to the estate or to conceal any information in connection
therewith or, in the case of a debtor who is a natural person, to induce a
creditor not to oppose an application for rehabilitation; or
(e)
at any time within two years before the date of liquidation of his or
her estate or the estate of the debtor, with intent to obtain credit or the
309
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