19 Provided that— (i) he or she may not vote in respect of a claim that is dependent upon the fulfilment of a condition until he or she proves that the condition has been fulfilled or, on written application by the creditor to the administrator, the administrator otherwise orders; (ii) he or she may not vote in respect of any claim acquired by him or her by cession or purchase from any person after the commencement of the administration. (5) The vote of a creditor shall be reckoned according to the value of his or her claim. (6) Any creditor holding any security, other than a general notarial bond, shall put a value on his or her security when proving his or her claim and, except in the election of the administrator and upon any question affecting his or her security, his or her vote shall be reckoned according to the value of the balance, if any, of his or her claim remaining after deduction therefrom of the said value of his or her security. (7) At every meeting of members of a troubled financial institution the votes of each member shall be those to which he or she is entitled according to the articles of the institution in force at the commencement of the administration. (8) No creditor or member who is a specified person shall participate, whether in person or by proxy, in any meeting of creditors or members. 17 Subsequent meetings of creditors and members (1) The administrator shall to the extent possible inform the representatives elected or appointed in terms of section 16(2)(c) (hereinafter referred to as “the representatives”) of the manner in which he or she intends to exercise any of his or her powers in terms of section 11, and, to the extent that it is not possible to so inform them, the administrator shall inform them as soon as possible after the exercise of any such power. (2) The representatives may at any time, on not less than seven days’ notice to the administrator, convene joint or separate meetings of the creditors and members at which the creditors or members may make any recommendation— (a) rejecting any action proposed to be taken by the administrator in the exercise of his or her powers and additionally, or alternatively, recommending an alternative course of action; or (b) reversing any action taken by the administrator in the exercise of his or her powers, to the extent that such reversal is possible; or (c) generally as to the manner in which the administrator is to exercise his or her powers; and the administrator shall promptly respond in writing to any such recommendation, but he or she shall not be bound by any such recommendation unless— (d) there is no difference in the recommendation of the creditors and members; and (e) either of both of the following conditions apply, namely, that— (i) the claims of the creditors participating at the meeting represent more than seventy-five percent in value of the debts owed to them by the troubled financial institution; or

Select target paragraph3

Add to table of contents