MRL3701
ASSIGNMENT 2
DUE DATE: 31 AUGUST 2026
, MRL3701 ASSIGNMENT 2 2026
DUE 31 AUGUST 2026
QUESTION 1
Neliswa is an unrehabilitated insolvent. She wishes to stand as a candidate in the
upcoming municipal elections for the Evolve party. Her trustee is of the opinion that she
should not begin her political career at this stage. Explain whether Neliswa's trustee may
interfere with her intended political career.
Neliswa's trustee is correct in his opinion that she should not begin her political career at this
stage. The disqualification is automatic and flows directly from the Constitution, not from any
action taken by the trustee.
(i) Constitutional Disqualification
Section 158(1)(c) of the Constitution, read with section 47(1)(c), expressly disqualifies an
unrehabilitated insolvent from being a member of a municipal council.¹ This disqualification is
absolute and operates automatically by operation of law. Neliswa, being an unrehabilitated
insolvent, is ipso facto disqualified from standing as a candidate in the municipal elections.²
The rationale for this prohibition is that members of municipal councils hold positions of
significant trust and responsibility. The common denominator in offices from which insolvents
are disqualified is honesty and trust.³
¹ Constitution of the Republic of South Africa, 1996, ss 47(1)(c), 158(1)(c).
² Smith, Van der Linde and Calitz, Hockly's Law of Insolvency, Winding-Up and Business Rescue (10th
edn, Juta 2022) 82–84.
³ Smith (n 2) 82–84.
ASSIGNMENT 2
DUE DATE: 31 AUGUST 2026
, MRL3701 ASSIGNMENT 2 2026
DUE 31 AUGUST 2026
QUESTION 1
Neliswa is an unrehabilitated insolvent. She wishes to stand as a candidate in the
upcoming municipal elections for the Evolve party. Her trustee is of the opinion that she
should not begin her political career at this stage. Explain whether Neliswa's trustee may
interfere with her intended political career.
Neliswa's trustee is correct in his opinion that she should not begin her political career at this
stage. The disqualification is automatic and flows directly from the Constitution, not from any
action taken by the trustee.
(i) Constitutional Disqualification
Section 158(1)(c) of the Constitution, read with section 47(1)(c), expressly disqualifies an
unrehabilitated insolvent from being a member of a municipal council.¹ This disqualification is
absolute and operates automatically by operation of law. Neliswa, being an unrehabilitated
insolvent, is ipso facto disqualified from standing as a candidate in the municipal elections.²
The rationale for this prohibition is that members of municipal councils hold positions of
significant trust and responsibility. The common denominator in offices from which insolvents
are disqualified is honesty and trust.³
¹ Constitution of the Republic of South Africa, 1996, ss 47(1)(c), 158(1)(c).
² Smith, Van der Linde and Calitz, Hockly's Law of Insolvency, Winding-Up and Business Rescue (10th
edn, Juta 2022) 82–84.
³ Smith (n 2) 82–84.
