Co-operatives Act, 2005 (Act No. 14 of 2005)

Regulations

Co-operatives Administrative Regulations, 2016

Chapter 2 : Winding Up and Judicial Management of Co-operatives

Part A : Winding-Up of Co-operatives

Functions of liquidators

91. Realisation of movable assets in possession of creditors as security
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(1)A creditor of a co-operative being wound up holding a movable asset as security for his or her claim against the co-operative must within 30 days of publication of the notice referred to in regulation 80 notify the liquidator of such co-operative of his or her possession of such asset, the nature of such asset and the grounds of his or her preference to such asset.

 

(2)If such asset consists of securities or a bill of exchange the creditor may after he or she has given such notice realize such asset in terms of sub regulation(4).

 

(3)If such asset does not consist of securities or a bill of exchange the liquidator may take over such asset from the creditor at a value agreed upon between the liquidator and the creditor or at the full amount of the creditor's claim, and if the liquidator does not so take over such asset, the creditor may realize such asset in terms of sub regulation (4).

 

(4)A creditor may realize an asset referred to in sub regulation (2) or (3) in the following manner, namely—
(a)if it consist of a thing ordinarily sold through a stockbroker the creditor may forthwith cause it to be sold by a stockbroker approved by the liquidator;
(b)if it consists of a thing which in the opinion of the liquidator can profitably be sold at a public auction, the creditor may cause it to be sold by public auction through an auctioneer approved by the liquidator;
(c)if it consists of a thing which in the opinion of the liquidator cannot profitably be sold by public auction, the creditor may cause it to be realized in a manner approved by the liquidator.

 

(5)As soon as a creditor has realized an asset in terms of sub regulation (4) he or she must forthwith pay the net proceeds thereof and submit all supporting documents relating to the realization of such asset to the liquidator.

 

(6)If the asset concerned has not been realized within 90 days of the publication of the notice referred to in regulation 16 the creditor must forthwith deliver such asset to the liquidator.