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(b) in the case of a meeting of creditors, the proving of claims against the company
under reconstruction;
(c) the election by the creditors and members of one person each (who need not be a
creditor or member) to represent their interests to the administrator:
Provided that if a meeting of the creditors or members fails, neglects or refuses
to elect any person for the purpose of this paragraph, the administrator shall appoint
one of their number for that purpose.
(3) Subsections (4) to (9) shall apply to the initial and every subsequent meeting of
creditors and members.
(4) In a reconstruction every creditor shall be entitled to vote at any meeting of creditors
of the company as soon as his or her claim has been proved:
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 reconstruction.
(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 claim remaining after
deduction therefrom of the said value of his or her security.
(7) The administrator shall, subject to any directions of the appropriate Minister,
appoint—
(a) a single representative to represent the State as a creditor of the company at the
meetings of the creditors;
(b) one representative each to represent the State and every statutory corporation and
State-controlled company that is a creditor of the company at the meetings of
creditors.
(8) At every meeting of members of the company under reconstruction the votes of each
member shall be those to which he or she is entitled according to the articles of the company
in force at the commencement of the reconstruction.
(9) No creditor or member who is a culpable person shall participate, whether in person
or by proxy, in any meeting of creditors or members.
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Subsequent meetings of creditors and members
(1) The administrator shall to the extent possible inform the representatives elected or
appointed in terms of section 21(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 18,
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.
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