No. 7/2018 INSOLVENCY Cap. 6:07 (3) When acting in terms of subsection (2)(a) (b) a corporate rescue practitioner must not suspend any provision of(i) an employment contract; or (ii) a financial contract to which the provisions of section 35 or 36 would have applied had the company been liquidated; and a court may not cancel any provision of(i) an employment contract, except as contemplated in subsection ( l ); (ii) an agreement to which the provisions of section 35 or 36 would have applied had the company been liquidated; (c) and if a corporate rescue practitioner suspends a provision of an agreement relating to security granted by the company, that provision nevertheless continues to apply for the purpose of section 127, with respect to any proposed disposal of property by the company. (4) Any party whose agreement that has been suspended or cancelled, or any provision which has been suspended or cancelled, in terms of subsection (2), may assert a claim against the company only for damages. (5) If liquidation proceedings have been converted into corporate rescue proceedings, the liquidator is a creditor of the company to the extent of any outstanding claim by the liquidator for any remuneration due for work performed, or compensation for expenses incurred, before the corporate rescue proceedings began. 130 Effect on shareholders and directors (l) During corporate rescue proceedings an alteration in the classification or status of any issued securities of a company, other than by way of a transfer of securities in the ordinary course of business, is invalid except to the extent(a) that the Court otherwise directs; or (b) contemplated in an approved corporate rescue plan. (2) During a company's corporate rescue proceedings the board of the company will be deemed to be dissolved, and each director of the company(a) may no longer exercise the functions of director; and (b) may only exercise a management function within the company in accordance with the express instructions or direction of the corporate rescue practitioner, to the extent that it is reasonable to do so. (3) During a company's corporate rescue proceedings, each director of the company at the time the corporate rescue proceedings commenced must attend to the requests of the corporate rescue practitioner at all times, and provide the corporate rescue practitioner with any information about the company's affairs as may reasonably be required. (4) If, during a company's corporate rescue proceedings, one or more directors of the company at the time the corporate rescue proceedings commenced purports to take any action on behalf of the company, that action is void unless approved by the corporate rescue practitioner. 294