Part C - Rights of affected persons during business rescue proceedings

149. (1) A committee of employees, or of creditors, appointed in terms of section 147 or 148, respectively—

(a) may consult with the practitioner about any matter relating to the business rescue proceedings, but may not direct or instruct the practitioner;
(b) may, on behalf of the general body of creditors or employees, respectively, receive and consider reports relating to the business rescue proceedings; and
(c) must act independently of the practitioner to ensure fair and unbiased representation of creditors’ or employees’ interests.

(2) A person may be a member of a committee of creditors or employees, respectively, only if the person is—

(a) an independent creditor, or an employee, of the company;
(b) an agent, proxy or attorney of an independent creditor or employee, or other person acting under a general power of attorney; or
(c) authorised in writing by an independent creditor or employee to be a member.

147. (1) Within 10 business days after being appointed, the practitioner must convene, and preside over, a first meeting of creditors, at which—

(a) the practitioner—

(i) must inform the creditors whether the practitioner believes that there is a reasonable prospect of rescuing the company; and
(ii) may receive proof of claims by creditors; and

(b) the creditors may determine whether or not a committee of creditors should be appointed and, if so, may appoint the members of the committee.

(2) The practitioner must give notice of the first meeting of creditors to every creditor of the company whose name and address is known to, or can reasonably be obtained by, the practitioner, setting out the—

(a) date, time and place of the meeting; and
(b) agenda for the meeting.

(3) At any meeting of creditors, other than the meeting contemplated in section 151, a decision supported by the holders of a simple majority of the independent creditors’ voting interests voted on a matter, is the decision of the meeting on that matter.

148. (1) Within 10 business days after being appointed, the practitioner must convene, and preside over, a first meeting of employees’ representatives, at which—

(a) the practitioner must inform the employees’ representatives whether the practitioner believes that there is a reasonable prospect of rescuing the company; and
(b) the employees’ representatives may determine whether or not an employees’ committee should be appointed and, if so, may appoint the members of the committee.

(2) The practitioner must give notice of the meeting to every registered trade union representing employees of the company and, if there are any employees who are not represented by such a registered trade union, to those employees, or their representatives, setting out the—

(a) date, time and place of the meeting; and
(b) agenda for the meeting.

146. During a company’s business rescue proceedings, each holder of any issued security of the company is entitled to—

(a) notice of each court proceeding, decision, meeting or other relevant event concerning the business rescue proceedings;

(b) participate in any court proceedings arising during the business rescue proceedings;

(c) formally participate in a company’s business rescue proceedings to the extent provided for in this Chapter;

(d) vote to approve or reject a proposed business rescue plan in the manner contemplated in section 152, if the plan would alter the rights associated with the class of securities held by that person; and

(e) if the business rescue plan is rejected, to—

(i) propose the development of an alternative plan, in the manner contemplated in section 153; or
(ii) present an offer to acquire the interests of any or all of the creditors or other holders of the company’s securities in the manner contemplated in section 153.