[ASSENTED TO 8 DECEMBER, 2000]

[DATE OF COMMENCEMENT: 28 NOVEMBER, 2003]
(English text signed by the President)

This Act has been updated to Government Gazette 26206 dated 31 March, 2003.    

as amended by
Judicial Matters Amendment Act, No. 42 of 2001
[with effect from 7 December, 2001, unless otherwise indicated]
Judicial Matters Second Amendment Act, No. 55 of 2003

ACT

To provide effective mechanisms for dealing with cases of cross-border insolvency; and to amend the Insolvency Act, 1936, so as to further regulate the jurisdiction of the High Courts; and to provide for matters connected therewith.

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 favourable 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,