PART XIII
TRANSITIONAL PROVISIONS, AMENDMENTS, REPEALS AND SAVINGS
105 Interpretation in Part XIII
In this Part
“appropriate successor company” means the successor company or, where more than one successor company
is formed, the successor company licensed in terms of section one hundred and thirteen to operate the
cellular telecommunication, postal or telecommunication services carried on by the Corporation
immediately before the fixed date, or any company formed to undertake the purchase, manufacture,
maintenance and repair of equipment and apparatus used by any such company, as the case may be;
“securities”, in relation to the appropriate successor company, includes shares, debentures, bonds and other
securities of the successor company, whether or not constituting a charge on the company’s assets;
“transfer date” means the date fixed by the Minister in terms of subsection (1) of section one hundred and
eight or, where two or more such dates are so fixed, the first such date.
106 Formation of successor companies and exclusive reservation of certain postal and
telecommunication services to the Corporation and the appropriate successor company
(1) Subject to this section, the Minister shall, not later than six months after the fixed date, take such steps as
are necessary under the Companies Act [Chapter 24:03] to secure the formation of one or more companies limited
by shares, which shall be the successor company or successor companies to the Corporation for the purposes of
this Act.
(2) The provision of the following services shall be reserved exclusively to the Corporation with effect from
the fixed date, and to the appropriate successor company with effect from the transfer date
(a) the conveyance of letters whose mass is less than five hundred grams, other than such letters as are
conveyed by a commercial courier service:
Provided that the operator of a commercial courier service shall not charge less than the prescribed
rate for the conveyance of such letters by the Corporation or the appropriate successor company;
and
(b) the issuance of money orders or postal orders for an amount in excess of or less than that prescribed by
the Minister; and
(c) any prescribed agency service, being a service that was provided by the Corporation immediately before
the fixed date on behalf of the State, the Post Office Savings Bank referred to in section 3 of the
People’s Own Savings Bank Act [Chapter 24:22], and such other statutory body or Government
department as may be prescribed.
(3) Any person other than the Corporation or the appropriate successor company who provides any service
reserved to the Corporation or the appropriate successor company in terms of paragraph (a) or (b) of subsection
(2) shall be guilty of an offence and liable to the forfeiture of any proceeds accruing to him on account of the
provision of the reserved service and to a fine not exceeding level ten or to imprisonment for a period not
exceeding two years or to both such fine and such imprisonment.
[Subsection amended by section 4 of Act 22 of 2001]
(4) Until a telecommunication licence governing the service in question is issued to another person, there
shall be deemed to be reserved to the Corporation or the appropriate successor company, as the case may be, such
particular service comprised within a telecommunication service as may be prescribed.
107 Initial shareholding in successor company
(1) All the members of the appropriate successor company on its incorporation shall be persons nominated by
the Minister, with the approval of the President, and shall hold their shares on behalf of the State.
(2) All the shares initially issued to members of the appropriate successor company on its incorporation shall
be held by those members on behalf of the State.
108 Transfer of assets and liabilities of Corporation to successor company
(1) Subject to subsection (2), the Minister, in consultation with the Board of the Corporation, shall by written
notice fix the date on which the assets and liabilities of the Corporation shall be transferred to the appropriate
successor company:
Provided that the Minister may fix different dates for the transfer of different assets and liabilities.
(2) On the relevant transfer date, every asset and liability of the Corporation which the Minister has directed
shall be transferred to the appropriate successor company shall vest in that company.
(3) All bonds, hypothecations, deeds, contracts, instruments, documents and working arrangements that
subsisted immediately before the relevant transfer date and to which the Corporation was a party shall, on and
after that date, be as fully effective and enforceable against or in favour of the appropriate successor company as
if, instead of the Corporation, the appropriate successor company had been named therein.
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