Does South Africa’S Framework Require That Creditors Can Appoint And/Or Approve Or Reject An Insolvency Representative? - By Colin Strime

In liquidation appointments, liquidators are appointed in the first instance provisionally by the Master of the High Court based on requisitions of creditors. Those creditors who have the majority of the vote in value of claims can appoint a liquidator and in addition, those who have the majority of the creditors' votes in number also have the right to nominate a provisional liquidator. Thereafter final liquidators are appointed by those creditors whose claims are proven at the first meeting of creditors and who have a majority of claims in number and value.

In reorganisation the applicant to the business rescue proceedings nominates the practitioner in the court papers (Chapter VI, Section 129, para. 3(b) of the Companies Act 2008). An affected person may apply to a court for an order to set aside the practitioner (Chapter VI, Section 130, para. 1(b) of the Companies Act 2008). If the practitioner is removed in an application for business rescue to court, the practitioner is nominated by the board and approved by the court and in a voluntary, by the board of directors. In addition in a voluntary business rescue, i.e by way of directors' resolution the directors nominate the business rescue practitioner.