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Labour Relations Act, 1995 (Act No. 66 of 1995

Chapter III : Collective Bargaining

Part F : General Provisions concerning Councils

59. Winding-up of council

 

 

(1) The Labour Court may order a council to be wound up if—
(a) the council has resolved to wind up its affairs and has applied to the Court for an order giving effect to that resolution; or
(b) the registrar of labour relations or any party to the council has applied to the Court and the Court is satisfied that the council is unable to continue to function for any reason that cannot be remedied.

 

(2) If there are any persons not represented before the Labour Court whose interests may be affected by an order in terms of subsection (1), the Court must—
(a) consider those interests before deciding whether or not to grant the order; and
(b) if it grants the order, include provisions in the order disposing of each of those interests.

 

(3) If it makes an order in terms of subsection (1), the Labour Court may appoint a suitable person as liquidator, on appropriate conditions.

 

(4)
(a) The registrar of the Labour Court must determine the liquidator's fees.
(b) The Labour Court, in chambers, may review the determination of the registrar of the Labour Court.
(c) The liquidator's fees are a first charge against the assets of the council.

 

(5) If, after all the liabilities of the council have been discharged, any assets remain that cannot be disposed of in accordance with the constitution of that council, the liquidator must realise those assets and pay the proceeds to the Commission for its own use.

 

(6) For the purposes of this section, the assets and liabilities of any pension, provident or medical aid scheme or fund established by a council will be regarded and treated as part of the assets and liabilities of the council unless—
(a) the parties to the council have agreed to continue with the operation of the pension, provident or medical aid scheme or fund as a separate scheme or fund despite the winding-up of the council; and
(b) the Minister has approved the continuation of the scheme or fund; and
(c) application has been made in accordance with the provisions of the laws applicable to pension, provident or medical aid schemes or funds, for the registration of that scheme or fund in terms of those provisions.

 

(7) A pension, provident or medical aid scheme or fund registered under the provisions of those laws after its application in terms of subsection (6)(c), will continue to be a separate scheme or fund despite the winding-up of the council by which it was established.

 

(8) The Minister by notice in the Government Gazette may declare the rules of a pension, provident or medical aid scheme or fund mentioned in subsection (7), to be binding on any employees and employer or employers that fell within the registered scope of the relevant council immediately before it was wound-up.