SUB-PART F-APPLICATION OF PART TO DEBTORS OTHER THAN COMPANIES

( 1 ) The provisions of this section apply to a debtor provided for in subsection (2) who carries on a business and employs 10 or more employees.

(2) Part XXIII of this Act, with the exception of sections, 123(2), 130(1). (5) and (6), 133(3)(b), 136(3)(b), 139, 142(2)(b)(vii), 144(3)(b) and (c); 144(6) and (7), and section 149 read with the changes required by the context, applies to a debtor other than a company, but –
(a) a reference to a company or a director, board. management or officer of a company, must be regarded as a reference to a debtor, or the estate, or affairs of a debtor;

(b) a reference to “shareholder”, “equity”, “in existence” or “conversion of debt to equity” must be ignored;

(c) section 123(5)(c)(ii) must be read as follows: “if the Court has found that there were no reasonable grounds for believing that the debtor would be unlikely to pay all of its debts as they became due and payable, an order of costs against the debtor, unless the Court is satisfied that the debtor acted in good faith and on the basis of information that the debtor was reasonably entitled to rely upon.”;

(d) section 124(8)(a) must be read as follows: “may not apply for liquidation of the estate of the debtor until the corporate rescue proceedings have ended as determined in accordance with section 150(2); and”;
(e) section 131 (1 )(c) must be read as follows: “would not be disqualified from acting as a director in terms of the Companies Act [Chapter 24:31]”;

(f) section 133(l)(a), (b) and (c) must be read as follows: “During a debtor’s corporate rescue proceedings, the practitioner, in addition to any other powers and duties set out in this Chapter-

(a) has full management control of the debtor’s affairs in substitution for its pre-existing management;
(b) may delegate any power or function of the practitioner to a person who was part of the pre-existing management of the debtor;

(c) may appoint a person as part of the management of a debtor, whether to fill a vacancy or not, subject to subsection (2); and”.

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