| (1) | If any licensee fails to meet his obligations in terms of the conditions of his license or the provisions of this Act, the regulator may serve upon him by post a notice in writing to meet those obligations within 30 days or such longer period as the regulator may determine, and if the licensee fails to comply with the requirements of the notice— |
| (a) | he shall be guilty of an offence and upon conviction be punishable as provided in section 27; |
| (b) | the regulator may recommend to the Minister to authorise an appropriate undertaker in writing to enter upon and take possession of the undertaking of the licensee, and such undertaker shall in that event operate the undertaking for and on account of the licensee and at the risk and expense of the licensee, remitting the balance, if any, of the net income derived from the undertaking to the licensee; |
[Section 12(1)(b) substituted by section 6(a) of Act No. 46 of 1994]
| (c) | the regulator may withdraw his license at any time. |
| (2) | For the purposes of paragraph (b) of subsection (1)— |
| (a) | the licensee shall pay to the undertaker concerned a fee, the amount of which shall be determined by the Minister, to cover the estimated expenditure incurred by such undertaker in respect of the services so rendered by it in operating the undertaking; |
| (b) | such entry and taking into possession by the undertaker shall not prejudice the security of any debenture-holder or mortgagee or his right of enforcing such security; |
| (c) | the undertaker concerned shall not restore possession of the undertaking to the licensee until such time as the Minister is satisfied that the circumstances on account of which the entry was made no longer exist or will no longer hinder the proper functioning of the undertaking and that the licensee has satisfied his obligations under this Act and the conditions of his license. |
[Section 12(2) substituted by section 6(b) of Act No. 46 of 1994]
| (3) | The application of subsection (1)(b) or (c) shall not prejudice any civil claims which any consumer or other person may have against the licensee arising from his failure to fulfil his obligations in terms of the conditions of his license. |
| (4) | In the event of a license being cancelled in terms of subsection (1)(c), the Minister may cause an appropriate undertaker in writing to take possession of the undertaking, and the undertaker concerned shall in such event for its own account carry on such undertaking or provide for the carrying on of the undertaking by another person: Provided that whoever carries on the undertaking shall take over the assets of the undertaking. |
[Section 12(4) substituted by section 6(c) of Act No. 46 of 1994]
