MRL3701
ASSIGNMENT 2
SEMESTER 2 2026
UNIQUE NO.
DUE DATE: 31 AUGUST 2026
, Insolvency Law - MRL3701
Assignment 2 Semester 2 2026
QUESTION 1
Neliswa is an unrehabilitated insolvent who wishes to stand as a candidate in the
upcoming municipal elections for the Evolve party. The issue is whether her trustee may
interfere with her intended political career.
An unrehabilitated insolvent is subject to certain legal disabilities. In relation to municipal
government, section 158(1)(c) of the Constitution of the Republic of South Africa,
1996 provides that a person may not be eligible to become a member of a municipal
council if that person is an unrehabilitated insolvent. The Electoral Commission of South
Africa (IEC) similarly confirms that a person who has been declared an unrehabilitated
insolvent is disqualified from standing as a candidate in municipal elections.
The important distinction, however, is between the trustee's powers over the
insolvent's estate and the insolvent's personal and political activities. The
Insolvency Act 24 of 1936 primarily gives the trustee control over property forming part
of the insolvent estate and imposes duties relating to the administration and realisation
of that estate. It does not give the trustee a general power to control every aspect of the
insolvent's personal life or prevent her from pursuing a political career merely because
the trustee considers it unwise.
In Neliswa's case, therefore, the trustee cannot personally prevent or prohibit her
from pursuing a political career merely by virtue of being her trustee. However,
Neliswa's status as an unrehabilitated insolvent creates an independent legal disability:
she cannot stand as a candidate for election to a municipal council while she
remains unrehabilitated. This restriction arises from the Constitution and electoral law,
rather than from any discretionary power of her trustee.
ASSIGNMENT 2
SEMESTER 2 2026
UNIQUE NO.
DUE DATE: 31 AUGUST 2026
, Insolvency Law - MRL3701
Assignment 2 Semester 2 2026
QUESTION 1
Neliswa is an unrehabilitated insolvent who wishes to stand as a candidate in the
upcoming municipal elections for the Evolve party. The issue is whether her trustee may
interfere with her intended political career.
An unrehabilitated insolvent is subject to certain legal disabilities. In relation to municipal
government, section 158(1)(c) of the Constitution of the Republic of South Africa,
1996 provides that a person may not be eligible to become a member of a municipal
council if that person is an unrehabilitated insolvent. The Electoral Commission of South
Africa (IEC) similarly confirms that a person who has been declared an unrehabilitated
insolvent is disqualified from standing as a candidate in municipal elections.
The important distinction, however, is between the trustee's powers over the
insolvent's estate and the insolvent's personal and political activities. The
Insolvency Act 24 of 1936 primarily gives the trustee control over property forming part
of the insolvent estate and imposes duties relating to the administration and realisation
of that estate. It does not give the trustee a general power to control every aspect of the
insolvent's personal life or prevent her from pursuing a political career merely because
the trustee considers it unwise.
In Neliswa's case, therefore, the trustee cannot personally prevent or prohibit her
from pursuing a political career merely by virtue of being her trustee. However,
Neliswa's status as an unrehabilitated insolvent creates an independent legal disability:
she cannot stand as a candidate for election to a municipal council while she
remains unrehabilitated. This restriction arises from the Constitution and electoral law,
rather than from any discretionary power of her trustee.
