[Section 63 heading substituted by section 290, item 45(a) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
[Section 63(1) substituted by section 290, item 45(b) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (2) | If a conversion referred to in subsection (1) takes place— |
| (a) | the exchange, central securities depository, independent clearing house or central counterparty referred to in subsection (1) is deemed to be a company incorporated in terms of the Companies Act from a date determined by the Authority in consultation with the exchange, central securities depository, independent clearing house or central counterparty in question; |
| (b) | the Companies and Intellectual Property Commission, established by section 185 of the Companies Act, must accept the filed notice of incorporation of the exchange, central securities depository, independent clearing house or central counterparty in terms of section 13 of that Act and register the entity in question as a company in terms of section 14 of that Act on the date referred to in paragraph (a); |
| (c) | the continued corporate existence of the exchange, central securities depository, independent clearing house or central counterparty from the date on which it was first licensed in terms of this Act is unaffected and any actions of the exchange, central securities depository, independent clearing house or central counterparty before its conversion remain effectual; |
| (d) | the terms and conditions of service of employees of the exchange, central securities depository, independent clearing house or central counterparty are not affected; |
| (e) | all the assets and liabilities of the exchange, central securities depository, independent clearing house or central counterparty, including any insurance, guarantee, compensation fund or other warranty owned or maintained by the exchange, central securities depository, independent clearing house or central counterparty to cover any liabilities of the clearing members of independent clearing houses or central counterparties, authorised users or participants, as the case may be, to clients, remain vested in and binding upon the company or such other entity acceptable to the Authority as the company may designate; |
| (f) | the company has the same rights and is subject to the same obligations as were possessed by or binding upon the exchange, central securities depository, independent clearing house or central counterparty immediately before its conversion; |
| (g) | all agreements, appointments, transactions and documents entered into, made, executed or drawn up by, with or in favour of the exchange, central securities depository, independent clearing house or central counterparty and in force immediately before the conversion remain in force and effectual, and are construed for all purposes as if they had been entered into, made, executed or drawn up by, with or in favour of the company, as the case may be; |
| (h) | any bond, pledge, guarantee or other instrument to secure future advances, facilities or services by the exchange, central securities depository, independent clearing house or central counterparty which was in force immediately before the conversion, remains in force, and is construed as a bond, pledge, guarantee or instrument given to or in favour of the company, as the case may be; |
| (i) | any claim, right, debt, obligation or duty accruing to any person against the exchange, central securities depository, independent clearing house or central counterparty or owing by any person to such exchange, central securities depository, independent clearing house or central counterparty is enforceable against or owing to the company, subject to any law governing prescription; |
| (j) | any legal proceedings that were pending or could have been instituted against the exchange, central securities depository, independent clearing house or central counterparty before the conversion may be continued or instituted against the company, subject to any law governing prescription; and |
| (k) | the licence of the exchange, central securities depository, independent clearing house or central counterparty, remains vested in the company if the company complies with all the requirements of this Act in respect of a exchange, central securities depository, independent clearing house or central counterparty. |
[Section 63(2) substituted by section 290, item 45(c) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
