No. 7/2018
INSOLVENCY
Cap.6:07
124 Court order to commence corporate rescue proceedings
(I) Unless a company has adopted a resolution contemplated in section 122,
an affected person may apply to a Court at any time for an order placing the company
under supervision and commencing corporate rescue proceedings.
(2) An applicant in terms of subsection (I) must-
(a)
serve a copy of the application on the company, the Master and the
Registrar of Companies; and
(b)
notify each affected person of the application by standard notice.
(3) Each affected person has a right to participate in the hearing of an application
in terms of this section.
(4)After considering an application in terms of subsection (1), the Court may(a)
make an order placing the company under supervision and commencing
corporate rescue proceedings, if the Court is satisfied that(i) the company is financially distressed; or
(ii) the company has failed to pay over any amount in terms of an
obligation under or in terms of a public regulation, or contract, with
respect to employment-related matters; or
(iii) it is otherwise just and equitable to do so for financial reasons;
and there is a reasonable prospect for rescuing the company;
or
(b)
dismissing the application, together with any further necessary and
appropriate order, including an order placing the company under
liquidation.
(5) If the Court makes an order in terms of subsection (4)(a), the Court may make
a further order appointing as interim practitioner a person who satisfies the requirements
of section 131, and who has been nominated by the affected person who applied in terms
of subsection ( 1), subject to ratification by the holders of a majority of the independent
creditors' voting interests at the first meeting of creditors, as contemplated in section
140.
(6) If liquidation proceedings have already been commenced by or against the
company at the time an application is made in terms of subsection (1), the application
will suspend those liquidation proceedings until(a)
the Court has adjudicated upon the application; or
(b)
the corporate rescue proceedings end, if the Court makes the order applied
for.
(7) In addition to the powers of a Court on an application contemplated in this
section, a Court may make an order contemplated in subsection (4), or (5) if applicable,
at any time during the course of any liquidation proceedings or proceedings to enforce
any security against the company.
(8) A company that has been placed under supervision in terms of this section(a)
may not adopt a resolution placing itself in liquidation until the corporate
rescue proceedings have ended as determined in accordance with section
125(2); and
(b)
must notify each affected person of the order within five business days
after the date of the order.
125 Duration of corporate rescue proceedings
(I) Corporate rescue proceedings begin when-
290
Select target paragraph3
Add to table of contents