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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

143. Remuneration of practitioner

 

 

1) The practitioner is entitled to charge an amount to the company for the remuneration and expenses of the practitioner in accordance with the tariff prescribed in terms of subsection (6).

 

2) The practitioner may propose an agreement with the company providing for further remuneration, additional to that contemplated in subsection (1), to be calculated on the basis of a contingency related to—
a) the adoption of a business rescue plan at all, or within a particular time, or the inclusion of any particular matter within such a plan; or
b) the attainment of any particular result or combination of results relating to the business rescue proceedings.

 

3) Subject to subsection (4), an agreement contemplated in subsection (2) is final and binding on the company if it is approved by—
a) the holders of a majority of the creditors’ voting interests, as determined in accordance with section 145(4) to (6), present and voting at a meeting called for the purpose of considering the proposed agreement; and
b) the holders of a majority of the voting rights attached to any shares of the company that entitle the shareholder to a portion of the residual value of the company on winding-up, present and voting at a meeting called for the purpose of considering the proposed agreement.

 

4) A creditor or shareholder who voted against a proposal contemplated in this section may apply to a court within 10 business days after the date of voting on that proposal, for an order setting aside the agreement on the grounds that—
a) the agreement is not just and equitable; or
b) the remuneration provided for in the agreement is unreasonable having regard to the financial circumstances of the company.

 

5) To the extent that the practitioner’s remuneration and expenses are not fully paid, the practitioner’s claim for those amounts will rank in priority before the claims of all other secured and unsecured creditors.

 

6) The Minister may make regulations prescribing a tariff of fees and expenses for the purpose of subsection (1).