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

Preamble

 

 

WHEREAS the General Assembly of the United Nations on 15 December 1997 adopted a resolution, co-sponsored by the Republic of South Africa, recommending that States review their legislation on cross-border insolvency and, in that review, give favorable consideration to the Model Law on Cross-Border Insolvency of the United Nations Commission on International Trade Law;

 

AND WHEREAS the Republic of South Africa acknowledges the need to create effective mechanisms for dealing with cases of cross-border insolvency in accordance with the provisions of the Model Law, bearing in mind the need for internationally harmonised legislation governing instances of cross-border insolvency;

 

AND WHEREAS there is a need—

* to strengthen cooperation between the courts and other competent authorities of the Republic of South Africa and those of foreign states involved in cases of cross-border insolvency;

 

* for greater legal certainty for trade and investment;

 

* for fair and efficient administration of cross-border insolvencies that protects the interests of all creditors and other interested persons, including the debtor;

 

* for protection and maximisation of the value of the debtor’s assets;

 

* for the facilitation of the rescue of financially troubled businesses, thereby protecting investment and preserving employment,

 

BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa, as follows:—