16
16
Offences by culpable persons
(1) Any culpable person who—
(a) threatens, resists, hinders or obstructs or uses foul, abusive or insulting language
towards or at the administrator; or
(b) fails or refuses to answer fully, to the best of his or her ability, any question put to
him or her by the administrator; or
(c) fails to produce any book, account or record when required to do so by the
administrator;
shall be guilty of an offence and liable to a fine not exceeding level five or imprisonment for a
period not exceeding six months or to both such fine and such imprisonment.
(2) Any culpable person who contravenes section 15(1) or who takes part in any
transaction prohibited by that subsection, shall be guilty of an offence and liable to a fine not
exceeding level ten or to imprisonment for a period not exceeding five years or to both such
fine and such imprisonment.
17
Power of administrator to compromise with persons liable to be
prosecuted or declared culpable
(1) An administrator may enter into a written agreement with any person liable to be
identified as a culpable person under section 10(1), or prosecuted under section 36, in terms
of which the administrator undertakes not to identify such person as culpable or cause such
person to be prosecuted in return for⎯
(a) full disclosure by such person of the circumstances that led to a company under
reconstruction becoming insolvent, including evidence concerning the involvement
of any other person liable to be identified under section 10(1) or prosecuted under
section 36 who may have contributed to those circumstances; and
(b) the payment of moneys and the surrender to the administrator of any shares, rights
or interests in or claims upon the company under reconstruction held by such person
towards discharging the whole or an agreed part of such person's liability for the
debts and liabilities of the company and for the reconstruction expenses referred to
in section 34(2).
(2) If a person with whom the administrator has concluded an agreement under
subsection (1) does not, within the agreed period or on the agreed date, honour any
undertakings referred to in⎯
(a) subsection (1)(a) or (b), the administrator may institute proceedings for the
identification of such person as a culpable person or for the prosecution of such
person or both;
(b) subsection (1)(b), the administrator may institute civil action in a court of competent
jurisdiction for the recovery of any moneys due or the surrender of any shares, rights
or interests in or claims upon the company under reconstruction held by such person,
and section 13 shall apply to such action.
Select target paragraph3
Add to table of contents