( 1) As soon as practicable after being appointed, a corporate rescue practitioner must investigate the company’s affairs, business, property, and financial situation, and after having done so, consider whether there is any reasonable prospect of the company being rescued.
(2) If, at any time during corporate rescue proceedings, the practitioner concludes that
(a) there is no reasonable prospect for the company to be rescued, the practitioner must-
(i) so inform the Court, the company, and all affected persons by standard notice; and
(ii) apply to the Court for an order discontinuing the corporate rescue proceedings and placing the company into liquidation;
or                                                                                                                                                                                                                (b) there no longer are reasonable grounds to belie\·e that the company is financially distressed, the practitioner must so inform the Court, the company, and all affected persons by standard notice, and-                                                (i) if the corporate rescue process was confirmed by a Court order in terms of section 123, or initiated by an application to the Court in terms of section 124, apply to a Court for an order terminating the corporate rescue proceedings; or
(ii) otherwise, file a notice of termination of the corporate rescue proceedings;
or                                                                                                                                                                                                              (c) there is evidence, in the dealings of the company before the corporate rescue proceedings began, of-
(i) impeachable dispositions, the practitioner must take any necessary steps to rectify the matter and the provisions of Part 7 dealing with impeachable dispositions, and sections 56 to 63 dealing with examinations, shall apply with the necessary changes;
(ii) reckless trading, insolvent trading, fraud or other contravention of any law relating to the company, the practitioner-
A. must forward the evidence to the appropriate authority for further investigation and possible prosecution;                     and
B. may apply the provisions of sections 117 and 118, and may recover any misappropriated assets of the                               company;
(iii) a failure by the company or any director to perform any material obligation relating to the company, the practitioner must take any necessary steps to rectify the matter and may direct the management to take appropriate steps.
(3) A Court to which an application has been made in terms of subsection (2) (a)(ii) may make the order applied for, or any other order that the Court considers appropriate in the circumstances.