Section 358: Excerpt From the Act: Stay of Legal Proceedings
At any time after the presentation of an application for winding-up and before a winding-up order has been made, the company concerned or any creditor or member thereof may-
(a) where any action or proceeding by or against the company is pending in any court in the Republic, apply to such court for a stay of the proceedings; and
(b) where any other action or proceeding is being or about to be instituted against the company, apply to the Court to which the application for winding-up has been presented, for an order restraining further proceedings in the action or proceeding, and the court may stay or restrain the proceedings accordingly on such terms as it thinks fit.
Section 359: Excerpt From the Act: Suspension of Legal Proceedings
359 Legal proceedings suspended and attachments void
(1) When the Court has made an order for the winding-up of a company or a special resolution for the voluntary winding-up of a company has been registered in terms of section 200-
(a) all civil proceedings by or against the company concerned shall be suspended until the appointment of a liquidator; and
(b) any attachment or execution put in force against the estate or assets of the company after the commencement of the winding-up shall be void.
(2) (a) Every person who, having instituted legal proceedings against a company which were suspended by a winding-up, intends to continue the same, and every person who intends to institute legal proceedings for the purpose of enforcing any claim against the company which arose before the commencement of the winding-up, shall within four weeks after the appointment of the liquidator give the liquidator not less than three weeks’ notice in writing before continuing or commencing the proceedings.
(b) If notice is not so given the proceedings shall be considered to be abandoned unless the Court otherwise directs.
