PRESENTATION : SELECTION COMMTTEE ON LAND AND ENVIRONMENTAL AFFAIRS SOUTH AFRICAN ABATTOIR CORPORATION ACT REPEAL BILL, 2005
INTRODUCTION • The South African Abattoir Corporation Act (hereinafter referred to as “the Act”) and its Purpose. • The Incorporation of South African Abattoir Corporation as a Public Company (ABAKOR). • Liquidation process of ABAKOR • Conclusion
THE SOUTH AFRICAN ABATTOIR CORPORATION ACT AND ITS PURPOSE. • The South African Abattoir Corporation Act come into effect on the 10th July 1992. • Its purpose was to: 1. Abolish the Abattoir Commission. 2. Provide for the incorporation of the South African Abattoir Corporation as a Public Company and the disposal of shares held in the company by the State.
THE INCORPORATION OF SOUTH AFRICAN ABATTOIR CORPORATION AS A PUBLIC COMPANY (ABAKOR). • Pursuant to the Act, South African Abattoir Corporation was duly registered and incorporated into a Public Company. • Upon incorporation of ABAKOR, all the assets, liabilities, rights and obligations of the Corporation passed to ABAKOR. • The State became the sole shareholder of ABAKOR. • The Minister of Agriculture was duly authorized to exercise on behalf of the State, the rights attached to ABAKOR shares. • The Directors of ABAKOR could only alter the share capital with the approval of the Ministers of Agriculture and Finance.
LIQUIDATION PROCESS OF ABAKOR • ABAKOR was indebted to a number of creditors. • These include the Meat Board which later became the Meat Industry Trust. • ABAKOR could not manage to pay its debts. • The ABAKOR’s inability to pay its debts, resulted in the initiation of liquidation proceedings in the High Court. • On the 10th October 2000, a rule nisi was granted by the Transvaal Provincial Division of the High Court of South Africa and was published as ordered. • On the return date i.e. the 31st October 2000, no cause was shown why the rule nisi could not be made a final order. • ABAKOR was placed under final winding – up order on the 31st October 2000. • The final liquidation and distribution account was confirmed on the 11th of December 2003. • On the 16th January 2004, the final liquidation and distribution account was advertised in the Government Gazette No 25906. • The liquidation process has now been finalized.
CONCLUTION • The objective of the Act was to provide for the incorporation of the South African Abattoir Corporation into a Public Company (ABAKOR). • ABAKOR has since been liquidated. • As the result of the liquidation of ABAKOR, the Act had become obsolete. • Therefore the Act must be repealed as the purpose for which it passed for no longer exists.