Acts Online
GT Shield

Companies Act, 2008 (Act No. 71 of 2008)

Chapter 6 : Business Rescue and Compromise with Creditors

Part A : Business rescue proceedings

133. General moratorium on legal proceedings against company

 

 

1) During business rescue proceedings, no legal proceeding, including enforcement action, against the company, or in relation to any property belonging to the company, or lawfully in its possession, may be commenced or proceeded with in any forum, except—
a) with the written consent of the practitioner;
b) with the leave of the court and in accordance with any terms the court considers suitable;
c) as a set-off against any claim made by the company in any legal proceedings, irrespective of whether those proceedings commenced before or after the business rescue proceedings began;
d) criminal proceedings against the company or any of its directors or officers;
e) proceedings concerning any property or right over which the company exercises the powers of a trustee; or
f) proceedings by a regulatory authority in the execution of its duties after written notification to the business rescue practitioner.

 

2) During business rescue proceedings, a guarantee or surety by a company in favour of any other person may not be enforced by any person against the company except with leave of the court and in accordance with any terms the court considers just and equitable in the circumstances.

 

3) If any right to commence proceedings or otherwise assert a claim against a company is subject to a time limit, the measurement of that time must be suspended during the company’s business rescue proceedings.