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Cross-Border Insolvency Act, 2000 (Act No. 42 of 2000)

Chapter 3  : Recognition of Foreign Proceedings and Relief

20. Effects of recognition of foreign main proceedings

 

 

(1) Upon recognition of foreign proceedings that are foreign main proceedings—
(a) commencement or continuation of individual legal actions or individual legal proceedings concerning the debtor's assets, rights, obligations or liabilities is stayed;
(b) execution against the debtor's assets is stayed;
(c) the right to transfer, encumber or otherwise dispose of any assets of the debtor is suspended; and
(d) section 21 of the Insolvency Act, 1936 (Act No. 24 of 1936), applies with regard to assets situated in the Republic to the same extent as it would have if the debtor had been sequestrated by a court.

 

(2) The scope, and the modification or termination, of the stay and suspension referred to in subsection (1) are subject to sections 20, 23 and 75 of the Insolvency Act, 1936, and sections 341 and 359 of the Companies Act, 1973 (Act No. 61 of 1973), and the court may, at the request of the foreign representative or a person affected by subsection (1), modify or terminate the scope of the stay and suspension.

 

(3) Subsection (1)(a) does not affect the right to commence individual actions or proceedings to the extent necessary to preserve a claim against the debtor.

 

(4) Subsection (1) does not affect the right to request the commencement of proceedings under the laws of the Republic relating to insolvency or the right to file claims in such proceedings.