The Companies Act therefore requires that companies have to satisfy the conditions of Section 4 (Solvency and Liquidity Test) before certain types of transactions occur. LEX AFRICA – WWW.LEXAFRICA.COM 3 CHAIRMAN OF LEX AFRICA PIETER STEYN ... Business Restructuring Guide for Africa. 16 May 2020 . 158 ter Application of Act to South-West Africa 159 Short title and date of commencement First Schedule - Forms . INSOLVENCY ACT NO. South Africa: When Is Section 34 Of The Insolvency Act Applicable? Insolvency is defined as a situation whereby the liabilities of an entity exceed the assets (fair value). Creditors therefore may not enforce their rights on any accrual, so the declaration of insolvency on the one spouse does not affect the status of the other spouse. Business rescue is the only formal rescue proceeding in South Africa (Chapter 6, Companies Act 2008). 5 Authorisation of trustee, liquidator, judicial manager, curator of institution, or receiver to act in foreign State A trustee, liquidator, judicial manager, curator of an institution, or receiver is CROSS-BORDER INSOLVENCY ACT 42 OF 2000 Page 4 of 12 24 OF 1936 [View Regulation] [ASSENTED TO 17 JUNE, 1936] [DATE OF COMMENCEMENT: 1 JULY, 1936] (Signed by the Governor-General in Afrikaans) This Act has been updated to Government Gazette 38557 dated 13 March, 2015. as amended by Finance Act… Section 34 of the Insolvency Act provides that when a trader (as defined in Section 2 of the Act) sells or transfers its business, the goodwill thereof, or goods or property forming part of such business, such trader is required to publish a notice to that effect. SOUTH AFRICA SENEGAL ZIMBABWE. One amendment to the Act in South Af rica after the date of transfer, the Insolvency Amendment Act 78 of 1980(RSA GG 7083), was made expressly applicable to South West Africa by the South West Africa Insolvency Amendment of Act 181980. According to South African case law, the test for insolvency is whether the debtor's liabilities exceed his assets. Accrual is only effective between the spouses themselves and does not affect the rights of creditors. Van Deventer & Van Deventer Incorporated – Divorce Attorneys in South Africa. 2365, dated 24 June 1936. 166 (c) of the Constitution of the Republic of South Africa, 1996 ( Act 108 of 1996 ). The objective of business rescue is to allow financially distressed companies to restructure and reorganise, to avoid insolvency and allow the company to continue on a solvent basis, and/or to maximise returns to creditors or shareholders. This situation will often lead to an entity failing to pay off its obligations as they become due. None of the other South African amendments As head of the Insolvency, Business Rescue and Restructuring practice group ... management of the company and has an obligation to act in the best interests of the company. The Insolvency Act also defines the term "insolvent estate" as an estate under sequestration, however the Act does not define the term "insolvency". Under and by virtue of the powers vested in me by section 73 (2) (a) of the Insolvency Act, 1936 (Act 24 of 1936), I— (1) K. J. Wattrus, Master of the Supreme Court of the Transvaal Provincial Division of the Supreme Court of South Africa; 1979. INSOLVENCY ACT 24 OF 1936 (Gazette Extraordinary No. The enactment of the Constitution of the Republic of South Africa, Act 200 of 1993, 4 and the Constitution of the Republic of South Africa, Act 108 of 1996,5 which replaced it, has brought about what has been described as a complete ... sections of the Insolvency Act to apply, mutatismu-tandis, to the liquidation of companies and close