Phillips Law

Section 145: Failure to adopt corporate rescue plan

(5) If an affected person makes an offer contemplated in subsection (2)(a), the corporate rescue practitioner must -(a) adjourn the meeting for no more than five business days, as necessary to afford the practitioner an opportunity to make any necessary revisions to the corporate rescue plan to appropriately reflect the results of the offer; and

(b) set a date for resumption of the meeting, without further notice, at which the provisions of section 144 and this section will apply afresh.

(6) If no person takes any action contemplated in subsection (1), the corporate rescue practitioner must promptly file a notice of the termination of the corporate rescue proceedings.

(7) A holder of a voting interest, or a person acquiring that interest in terms of a binding offer, may apply to a Court to review, re-appraise and re-value a determination by an independent expert in terms of subsection (2)(c).

(8) On an application contemplated in subsection (1), or (2), a Court may order that the vote on a corporate rescue plan be set aside if the Court is satisfied that it is reasonable and just to do so, having regard to –

(a) the interests represented by the person or persons who voted against the proposed corporate rescue plan; and

(b) the provision, if any, made in the proposed corporate rescue plan with respect to the interests of that person or those persons; and

(c) a fair and reasonable estimate of the return to that person, or those persons, if the company were to be liquidated.

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