| (1) |
At the taking into possession of an undertaking in terms of section 12 or the take-over of assets in terms of section 13, the undertaker concerned or the transferee, as the case may be, shall compensate the former under-taker for the net value of the assets belonging to or used in connection with the carrying on of the undertaking. |
[Section 14(1) substituted by section 7 of Act No. 46 of 1994]
| (2) |
Such value shall be the fair value at the time of take-over, due regard being had to the nature and condition of the assets, and their suitability for the purposes of the undertaking and for immediate use. |
| (a) |
In determining the value in question the following shall not be taken into account: |
| (i) |
That it is a compulsory take-over; |
| (ii) |
the goodwill of the undertaking; |
| (iii) |
the prospective profits of the undertaking; |
| (iv) |
any similar circumstances or considerations. |
| (b) |
Where the costs of the assets have already been redeemed in part or in full by means of the tariff income, this fact shall be taken into account in determining the value of the assets in order to ensure that the consumers concerned, if any, will, after the assets have been taken over, only be liable for the redemption, by way of tariffs to be charged, for those portions of the assets which have not yet been redeemed out of the tariff income. |
| (4) |
If any dispute arises between the parties as to the amount of compensation payable in terms of this section, the amount shall be determined by arbitration with due observation of the principles laid down in this section and in accordance with the provisions of the Arbitration Act, 1965 (Act No. 42 of 1965). |
Basic Conditions of Employment Act, 1997
