Advanced Search

Trade Practices Amendment Act


Published: 1985-04-24

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
Trade Practices Amendment Act
GOVERNMENT GAZETTE
OF THE REPUBLIC OF SOUTH AFRICA
REPUBLIEK VAN SUID-AFRIKA
STAATSKOERANT
Registered at the Post Office as a Newspaper As 'n Nuusblad by die Poskantoor Geregistreer
VOL. 238 CAPE TOWN, 24 APRIL 1985
KAAPST AD, 24 APRIL 1985 No. 9713
STATE PRESIDENT'S OFFICE KANTOOR VAN DIE STAATSPRESIDENT
No. 909. 24 April1985 No. 909. 24 April1985
It is .· hereby notified that the State President has assented to the following Act which is hereby published for general information:-
~. 49 of 1985: Trade Practices Amendment Act, 1985.
Hierby word bekend gemaak dat die Staatspresident sy goedkeuring geheg het aan die onderstaande Wet wat Iiierby ter algemene inligting gepubliseer word:-
No. 49 van 1985: Wysigingswet op Handelspraktyke, 1985.
2 No.9713 GOVERNMENTGAZETIE,24APRIL1985
Act No. 49,1985 TRADE PRACTICES AMENDMENT ACT, 1985
GENERAL EXPLANATORY NOTE:
Amendment of section 1 of Act 76 of 1976, as amended by section 1 of Act 78 of 1978 and section 1 of Act 55 of 1980.
Amendment of section 4C of Act 76 of 1976, as inserted by section2of Act 55 of 1980
Insertion of section ISA in Act 76 of 1976.
Words underlined with solid line indicate insertions in existing enactments.
ACT To amend the Trade Practices Act, 1976, so as to define revolving
schemes; to extend the additional powers of the Trade Prac- tices Advisory Committee; to empower the Minister of Trade and Industry to declare certain. trade practices to be revolv· ing schemes; and to grant to the said Minister winding-up and sequestration powers in respect of such trade practices; and to provide for matters connected therewith.
(Afrikaans text signed by the State President.) (Assented to 12 Apri/1985.)
BE IT ENACTED by the State President and the Parliament of the Republic of South Africa, as follows:-
1. Section 1 of the Trade Practices Act, 1976 (hereinafter re- . ferred to as the principal Act), is hereby amended by the inser- tion after the definition of "Minister" of the following definition: 5
'"revolving scheme' means any scheme in which, in the opinion of the committee a method or practice, whic contains a risk of financial loss for any or all of the par ticipants in that scheme in the event of a decline in th participation in that scheme, is at any stage applied o 10 followed;".
2. Section 4C of the principal Act is hereby amended by the insertion after paragraph (a) of the following paragraph:
" aA where such matter relates to a trade practice, make a written recommendation to the Minister that the trade 15 practice be declared a revolving scheme;".
3. The following section is hereby inserted in the principal Act after section 15: "Declaration lSA. 1 After recei t of a recommendation refer- ~:~=~~~i~j red to in section 4C ( aA), the Minister may- 20 exerciseof (a) by notice in the Gazette declare the relevant winding-u~ or trade practice to be a revolving scheme; sequestration (b) subject to the provisions of subsection (2), by power. the same or a subsequent notice direct that any
business which is or was engaged in such trade 25 practice, be wound up or that the estate of any person be sequestrated if he is or was so en- gaged as a shareholder or director of such busi- ness or as an owner of any business.
4 No. 9713
Act No. 49, 1985
Cessation of certain proceedings and prohibition of com- promise.
Short title and commencement.
GOVERNMENTGAZETrE, 24 APRIL 1985
TRADE PRACTICES AMENDMENT ACf, 1985
(2) The Minister shall in a notice whereby a wind- ing-up or sequestration under subsection (1) (b) is di- rected- (a) in respect of-
(i) a business wound up under the said subsec- 5 tion, state the name and the registration number, if applicable, of such business and the place where its registered office or main place of business is situate;
(ii) a person whose estate is sequestrated under 10 the said subsection, state the name of such person, the trade name under which he car- ries on his business, if applicable, and the place where he resides or from where he carries on his business; 15
(b) expressly state whether the winding-up or se- questration in question shall take place in terms of the provisions of the Companies Act, 1973 (Act No. 61 of 1973), the Close Corporations Act, 1984 (Act No. 69 of 1984), or the Insolven- 0 cy Act, 1936 (Act No. 24 of 1936); and
(c) indicate the court which has, under the· Act in question, jurisdiction in respect of such business or person.
(3) Subject to the provisions of subsection (4), a 5 notice referred to in subsection (2) shall, for the pur- poses of an Act stated therein, be deemed to be a final winding-up order or a final order of sequestra- tion, as the case may be, or a copy thereof, made by the .court indicated in the notice under the relevant 30 Act in respect of the business or person concerned.
(4) No court shall )lave jurisdiction to- (a) pronounce upon the validity of a recommenda-
tion referred to in section 4C (aA) or a notice referred to in subsection (1) (a) or (b); 35
(b) make an order whereby a winding-up order or an order of sequestration referred to in subsec- tion (3) is stayed or set aside.".
4. When a notice is published whereby the winding-up of a company is directed under section 15A (1) (b) of the principal40 Act-
(a) all proceedings in connection with the winding-up of that company which may be pending in any court in the Republic shall be stopped;
(b) no steps in terms of section 311 of the Companies Act; 45 1973 (Act No. 61 of 1973), for the conclusion of a com- promise between that company and its creditors shall be taken and any such steps already commenced shall not be proceeded with,
and the costs incidental to such proceedings or steps already 50 commenced shall, unless the court concerned orders otherwise, be deemed to be part of the costs of the winding-up of that com- pany in terms of the said notice.
5. This Act shall be called the Trade Practices Amendment Act, 1985, and shall be deemed to have come into operation on 55 1 August 1984.