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

Chapter 6 : Business Rescue and Compromise with Creditors

Part C : Rights of affected persons during business rescue proceedings

149. Functions, duties and membership of committees of affected persons

 

 

1) A committee of employees, or of creditors, appointed in terms of section 147 or 148, respectively—
a) may consult with the practitioner about any matter relating to the business rescue proceedings, but may not direct or instruct the practitioner;
b) may, on behalf of the general body of creditors or employees, respectively, receive and consider reports relating to the business rescue proceedings; and
c) must act independently of the practitioner to ensure fair and unbiased representation of creditors’ or employees’ interests.

 

2) A person may be a member of a committee of creditors or employees, respectively, only if the person is—
a) an independent creditor, or an employee, of the company;
b) an agent, proxy or attorney of an independent creditor or employee, or other person acting under a general power of attorney; or
c) authorised in writing by an independent creditor or employee to be a member.