Medical Schemes Act, 1998 (Act No. 131 of 1998)Chapter 11 : Judicial Matters52. Judicial Management |
| (1) | Chapter XV of the Companies Act, 1973 (Act No. 61 of 1973), shall, subject to the provisions of this section and with the necessary changes, apply in relation to the judicial management of a medical scheme, and in such application the Registrar shall be deemed to be a person authorised by section 346 of the Companies Act, 1973, to make an application to the High Court for the winding-up of the medical scheme. |
| (2) | The Registrar may, with the concurrence of the Council, make an application under section 427(2) of the Companies Act, 1973, for a judicial management order in respect of a medical scheme if he or she is satisfied that it is in the interests of the members of that medical scheme to do so. |
| (3) | In the application of Chapter XV of the Companies Act, 1973, as provided for by subsection (1)— |
| (a) | a reference which relates to the inability of a medical scheme to pay its debts or to meet its obligations shall be construed as relating also to its inability to comply with the requirements prescribed by section 35(1) of this Act; |
| (b) | in addition to any question which relates to the nature of a medical scheme as a successful concern, there shall be considered also the question whether any course of action is in the interest of its members; |
| (c) | a reference to the members of a company in sections 432(2) and 433(d) shall be construed as a reference also to the members of a medical scheme; |
| (d) | a reference in sections 432(2)(e) and 433(d) to the Registrar of Companies shall be construed as a reference also to the Registrar; |
| (e) | a reference in sections 428(3), 432(4) and 433(j) to the Master shall be construed as a reference also to the Registrar; and |
| (f) | a reference in section 433(j) to a contravention of any provision of that Act shall be construed as a reference also to a contravention of any provision of this Act; and |
| (g) | a reference to a director shall be construed as referring also to a member of the board of trustees. |
| (4) | If an application to the High Court for the judicial management of a medical scheme is made by a person other than the Registrar— |
| (a) | it shall not be heard unless copies of the notice of motion and of all accompanying affidavits and other documents filed in support of the application are 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) | the Registrar may, if he or she is satisfied that the application is contrary to the interests of the beneficiaries of the medical scheme concerned, make application to the High Court to join the application as a party and file affidavits and other documents in opposition to the application. |
| (5) | As from the date on which a provisional or final judicial management order is granted in respect of a medical scheme— |
| (a) | any reference in this Act to a medical scheme shall, unless clearly inappropriate, be construed as a reference to the provisional or final judicial manager, as the case may be; and |
| (b) | the provisional or final judicial manager of a medical scheme shall not admit members unless he or she has been granted permission to do so by the High Court in the provisional or final judicial management order or any variation thereof. |