Medical Schemes Act, 1998 (Act No. 131 of 1998)

Chapter 11 : Judicial Matters

51. Application to High Court
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(1)The Registrar may, with the concurrence of the Council, in regard to any medical scheme apply to the High Court for an order contemplated in paragraph (b), (c), (d) or (e) of subsection (5) if the Registrar is of the opinion that it is in the interest of beneficiaries or because material irregularities have come to his or her notice.

 

(2)A medical scheme may, in regard to itself, apply to the High Court for an order contemplated in paragraph (b), (d) or (e) of subsection (5), if the medical scheme is of the opinion that it is desirable, because the medical scheme is not in a sound financial condition or for any other reason that such an order be made in regard to the medical scheme: Provided that a medical scheme shall not make such an application except by leave of the High Court and the court of appeal shall not grant such leave unless the medical scheme has given security to an amount specified in the Rules of the High Court for the payment of such costs.

 

(3)Any member or one or more creditors of a medical scheme may make an application to the High Court for an order in terms of paragraph (b), (d) or (e) of subsection (5), and the proviso to subsection (2) shall apply in regard to such an application.

 

(4)If an application to the High Court in terms of subsection (3) is made by a person other than the Registrar—
(a)it shall not be heard unless a copy of the notice of motion and of all accompanying affidavits and other documents filed in support of the application are also lodged with the Registrar at least 15 days, or such shorter period as the High Court may allow on good cause shown, before the application is set down for hearing; and
(b)to the interest of the beneficiaries of the medical scheme concerned, make application to join the application as a party and file affidavits and other documents in opposition to the application.

 

(5)Upon any application in terms of the preceding subsections, the High Court may—
(a)refuse the application;
(b)order that an investigation be made and may issue such directions regarding such investigation as the High Court may deem desirable;
(c)order that the rules of the medical scheme relating to the appointment, powers, remuneration and removal from office of any officer, or relating to such other matter as the High Court may regard appropriate, be altered in a manner to be specified in such order;
(d)order that the medical scheme be placed under judicial management in terms of section 52; or
(e)order that the whole or any part of the business of the medical scheme be wound-up in terms of section 53.

 

(6)The High Court shall, in exercising its discretion under subsection (5), consider the equitable interests of the members and of any other person who has rendered or who intends to render financial assistance to the medical scheme, and, subject to such considerations as aforesaid, shall make such order as it deems most advantageous to the members.

 

(7)When a High Court has made an order under paragraph (b) of subsection (5) in regard to a medical scheme, it may at any time thereafter make an order under paragraph (c), (d) or (e) of that subsection in regard to that medical scheme, and when a High Court has made an order under paragraph (d) of subsection (5) in regard to the medical scheme, it may at any time thereafter make an order under paragraph (e) of that subsection in regard to that medical scheme.

 

(8)Notwithstanding anything to the contrary contained in the rules of a medical scheme, an order of the High Court made under paragraph (c) of subsection (5) shall take effect as from the date specified for that purpose in the order, or if no date has been so specified, as from the date of the order, and thereupon the said rules shall be deemed to have been amended in the manner specified by the High Court.

 

(9)Unless the High Court otherwise orders, the costs of the Registrar in or in connection with an application in terms of this section, shall be paid by the medical scheme and shall be a first charge upon the assets of such medical scheme.