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

Chapter 6 : Business Rescue and Compromise with Creditors

Part B : Practitioner’s functions and terms of appointment

139. Removal and replacement of practitioner

 

 

1) A practitioner may be removed only—
a) by a court order in terms of section 130; or
b) as provided for in this section.

 

2) Upon request of an affected person, or on its own motion, the court may remove a practitioner from office on any of the following grounds:
a) Incompetence or failure to perform the duties of a business rescue practitioner of the particular company;
b) failure to exercise the proper degree of care in the performance of the practitioner’s functions;
c) engaging in illegal acts or conduct;
d) if the practitioner no longer satisfies the requirements set out in section 138(1);
e) conflict of interest or lack of independence; or
f) the practitioner is incapacitated and unable to perform the functions of that office, and is unlikely to regain that capacity within a reasonable time.

 

3) The company, or the creditor who nominated the practitioner, as the case may be, must appoint a new practitioner if a practitioner dies, resigns or is removed from office, subject to the right of an affected person to bring a fresh application in terms of section 130(1)(b) to set aside that new appointment.