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(b) the extent to which he or she is stated to be personally liable for the debts and
liabilities of the troubled financial institution; or
(c) a finding that any share, right, or interest in or claim upon the troubled financial
institution that is purported to be held by him or her was obtained by or resulted
from any fraud committed by him or her in relation to the institution;
may, within seven days of the notification thereof in terms of subsection (3), make written
representations to the administrator to amend the part of the statement relating to the matters
referred to in subsection (1)(b) or (c) accordingly, and, if the administrator refuses to make
the amendment, the administrator shall, within twenty-one days after the date of a notification
in terms of subsection (3), apply to a judge in chambers for an order confirming the
identification or finding referred to in paragraph (a) or (c), or confirming the extent to which
the person may be held liable for the debts and liabilities of the troubled financial institution,
whichever matter is the subject of the objection.
(8) Where a person referred to in subsection (1)(b) or (c) makes no objection to any
matter referred to in subsection (7)(a), (b) or (c) within seven days of the notification thereof
in terms of subsection (3), or where a judge issues a confirming order in terms of subsection
(7) in relation to any matter in issue, the person concerned shall become a specified person for
the purposes of this Act.
(9) A person referred to in subsection (7) shall bear the onus of satisfying the
administrator or a judge that any amendment, rescission or variation of any matter referred to
in paragraph (a), (b) or (c) of that subsection should be made in his or her favour.
(10) A decision by a judge not to issue a confirming order in terms of subsection (7), or
to issue it subject to any amendment, rescission or variation of any matter referred to in
paragraph (a), (b) or (c) of that subsection in favour of a respondent, shall not prevent the
administrator from making a fresh application in terms of that subsection on the basis of new
evidence obtained since the original application, or to correct any mistake in the original
application, and subsections (3), (7), (8) and (9) shall apply to such fresh application.
(11) Any person shall be entitled by himself or herself or by his or her agent at all
reasonable times, on payment of the prescribed fee, to inspect the statement submitted in
pursuance of this section and to a copy thereof or extract therefrom.
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Revaluation of assets, liabilities and share capital of troubled financial
institutions
(1) Immediately after assuming office, the administrator shall undertake a valuation of
the assets and liabilities of the troubled financial institution in order to determine its net asset
value.
(2) If, following a valuation undertaken in terms of subsection (1), the administrator
considers that the share capital of the troubled financial institution is substantially over-valued
taking into consideration the institution’s net asset value, he or she may, subject to this
section, and with the approval of the Reserve Bank, reduce the nominal value of all or any
class of the institution’s shares.
(3) Sections 92 to 97 of the Companies Act, concerning the reduction of a company’s
share capital, shall not apply to any revaluation of a troubled financial institution’s shares
carried out under this section.
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