(1) During corporate rescue proceedings an alteration in the classification or status of any issued securities of a company, other than by way of a transfer of securities in the ordinary course of business, is invalid except to the extent –

(a) that the Court otherwise directs; or

(b) contemplated in an approved corporate rescue plan.

(2) During a company’s corporate rescue proceedings the board of the company will be deemed to be dissolved, and each director of the company –

(a) may no longer exercise the functions of director; and

(b) may only exercise a management function within the company in accordance with the express instructions or direction of the corporate rescue practitioner, to the extent that it is reasonable to do so.

• According to the Insolvency Act [Chapter 6:07]. PART XXIII: Corporate Rescue