(1) At a meeting convened in terms of section 143, the corporate rescue practitioner must –

(a) introduce the proposed corporate rescue plan for consideration by the creditors and, if applicable, by the shareholders; and

(b) inform the meeting whether the corporate rescue practitioner continues to believe that there is a reasonable prospect of the company being rescued; and

(c) provide an opportunity for the employees’ representatives to address the meeting; and

(d) invite discussion, and entertain and conduct a vote, on any motions to –

(i) amend the proposed plan, in any manner moved and seconded by holders of creditors’ voting interests, and satisfactory to the corporate rescue practitioner; or

(ii) direct the corporate rescue practitioner to adjourn the meeting in order to revise the plan for further consideration; and

(e) call for a vote for preliminary approval of the proposed plan, as amended if applicable, unless the meeting has first been adjourned in accordance with paragraph (d)(ii).

(2) In a vote called in terms of subsection (1)(e), the proposed corporate rescue plan will be approved on a preliminary basis if –

( a) it was supported by the holders of more than 75% of the creditors’ voting interests that were voted; and

(b) the votes in support of the proposed plan included at least 50% of the independent creditors’ voting interests, if any, that were voted.

(3) If a proposed corporate rescue plan –

(a) is not approved on a preliminary basis, as contemplated in subsection (2), the plan is rejected, and may be considered further only in terms of section 145; or

(b) does not alter the rights of the holders of any class of the company’s securities, approval of that plan on a preliminary basis in terms of subsection (2) constitutes also the final adoption of that plan, subject to satisfaction of any conditions on which that plan is contingent; or

(c) does alter the rights of any class of holders of the company’s securities –

(i) the corporate rescue practitioner must immediately hold a meeting of holders of the class, or classes of securities whose rights would be altered by the plan, and call for a vote by them to approve the adoption of the proposed corporate rescue plan; and

(ii) if, in a vote contemplated in subparagraph (i), a majority of the voting rights that were exercised-

A. support adoption of the plan, it will have been finally adopted, subject only to satisfaction of any conditions on which it is contingent; or

B. oppose adoption of the plan, the plan is rejected, and may be considered further only in terms of section 144.

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