Insolvency Amendment Act 84 of 1984

Insolvency Amendment Act, 1984 (No. 84 of 1984)

GENERAL EXPLANATORY NOTE:
[ ]  Words in bold type in square brackets indicate omissions from existing enactments.
__ Words underlined with solid line indicate insertions in existing enactments.

Act

• to amend the Insolvency Act, 1936, so as
  • to make provision that the beneficiaries under certain dispositions of property without value may compete with the creditors of insolvent estates; and
  • to rectify an incorrect reference; and
• to provide for incidental matters.

(Afrikaans text signed by the State President.)
(Assented to 28 June 1984.)

BE IT ENACTED by the State President and the House of Assembly of the Republic of South Africa, as follows:-

Amendment of section 26 of Act 24 of 1936.

1. Section 26 of the Insolvency Act, 1936 (hereinafter referred to as the principal Act), is hereby amended by the substitution for subsection (2) of the following subsection:

"(2) A disposition of property not made for value, which was set aside under [this section] subsection (1) or which was uncompleted by the insolvent, shall not give rise to any claim in competition with the creditors of the involvent's estate: Provided that in the case of a disposition of property not made for value, which was uncompleted by the insolvent, and which-

(a) was made by way of suretyship, guarantee or indemnity; and 

(b) has not been set aside under subsection (1), the beneficiary concerned may compete with the creditors of the insolvent's estate for an amount not exceeding the amount by which the value of the insolvent's assets exceeded his liabilities immediately before the making of that disposition.".

Amendment of section 97 of Act 24 of 1936.

2. Section 97 of the principal Act is hereby amended by the substitution for paragraph (c) of subsection (2) of the following paragraph: 

"(c) the following costs which shall rank pari passu and abate in equal proportions if necessary, that is to say: the taxed costs of sequestration (as defined in subsection (3)), the fee mentioned in [subsection (4) of section sixteen] section 16 (5), the remuneration of the curator bonis and of the trustee and all other costs of administration and liquidation including su·ch costs incurred by the trustee in giving security for his proper administration of the estate as the Master considers reasonable, in so far as they are not payable by a particular creditor in terms of section (1), any expenses incurred by the Master or by a presiding officer in terms of section 153 (2) and the salary or wages of any person who was en gaged by the curator bonis or the trustee in connection with the administration of the insolvent estate.".

Short title.

3. This Act shall be called the Insolvency Amendment Act, 1984.

Commencement

18 July 1984