Sec 130 - Illegal inducements for granting rehabilitation

130. Illegal inducements to vote for composition or not to oppose rehabilitation.—

Any undertaking to grant any benefit to any person in order to induce him or any other person to accept any offer of composition or to agree to, or refrain from opposing the rehabilitation of an insolvent, or as a consideration for the acceptance of an offer of composition or for the agreement to or non-opposition of the rehabilitation of an insolvent (whether by the person for whom the benefit is intended or by any other person), shall be void and any person who has accepted any such benefit or who has stipulated for any such benefit, whether for himself or any other person shall be liable to pay by way of penalty for the benefit of the creditors of the insolvent estate in question—

(a) a sum equal to the amount of the claim (if any) which he originally proved against the estate; and

(b) the amount or value of any benefit given or promised; and

(c) in case of a composition, the amount paid or to be paid to him under the composition.

Copyright © 2020 EZ Legal Solutions (Pty) Ltd.
All rights reserved - no reproduction of any content without author's written consent.