26
(2) An administrator in the employment of the State and any assistant administrator shall
be entitled to such reasonable remuneration for their services as may be fixed by the Minister
from time to time.
(3) In fixing the remuneration of an administrator or assistant administrator in terms of
subsection (2), the Minister shall take into account the manner in which the administrator or
assistant administrator has performed his or her functions and any recommendation by the
members or creditors of the company under reconstruction relating to such remuneration.
31
Liabilities incurred by administrator and interim board to have preference
over pre-reconstruction liabilities
(1) All liabilities incurred or to be incurred by the administrator or interim board in the
conduct of the company’s business shall be paid in preference to all other liabilities not
already discharged, exclusive of the costs of the reconstruction, and thereupon all claims
based upon such first-mentioned liabilities shall have preference in the order in which they
were incurred over all unsecured claims against the company except claims arising out of the
costs of the reconstruction.
(2) If a reconstruction order is superseded by a winding-up order—
(a) the preference conferred in terms of subsection (1) shall remain in force except in so
far as claims arising out of costs of the winding up are concerned; and
(b) all claims based on such liabilities incurred by the administrator or interim board
shall be taken to have been proved, and section 220 of the Act shall not apply in
respect thereof.
32
Period of reconstruction excluded in determining preference under
mortgage bond
The time during which any company, which is a debtor under a mortgage bond, is subject
to a reconstruction order, shall be excluded from the calculation of any period for the purpose
of determining whether the mortgage confers any preference in terms of section 111(3) of the
Insolvency Act [Chapter 6:04] as applied to the winding up of companies by the Act.
33
Position of auditor during reconstruction
Notwithstanding the publication of a reconstruction order in respect of any company and
for so long as the order is in force, the provisions of the Act relating to the appointment and
reappointment of an auditor and the rights and duties of an auditor shall continue to apply as
if any reference in those provisions to the directors of the company were a reference to the
administrator.
34
Reconstruction expenses
(1) The expenses of the reconstruction of a company (hereinafter in this section referred
to as “reconstruction expenses”), including in particular the remuneration of the administrator
and any assistant administrator, shall be defrayed in the first instance by the company, but
every culpable person shall, to the extent mentioned in subsection (2), be liable to repay the
company for reconstruction expenses.
(2) Every culpable person shall be liable for reconstruction expenses to the extent of fifty
per centum of the amount of the debts and other liabilities of the company for which such
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