MRL3701
ASSIGNMENT 2
DUE DATE: 24 MARCH 2026
, MRL3701 Assignment 2 2026
OPENS FOR SUBMISSION: 13 March 2026
DUE DATE: 24 March 2026
Question 1
What is the intended purpose of section 21 of the Insolvency Act 24 of 1936?
The principal purpose of section 21 of the Insolvency Act is to vest the separate
property of the solvent spouse in the Master and ultimately the trustee on sequestration
so that the insolvent estate is not deprived of assets to which it may be entitled.
This serves three practical aims:
to prevent collusion between spouses aimed at placing assets beyond the reach of
creditors;
to assist the trustee in identifying and administering property that may form part of the
insolvent estate; and
to provide a statutory mechanism for postponement, release or return of solvent-
spouse property where appropriate (so the vesting is not necessarily permanent).¹
1 InsolvencyAct 24 of 1936 s 21; A. Smith, Hockly’s Law of Insolvency, Winding-Up and Business Rescue; see
discussion of purpose and operation of s 21.
ASSIGNMENT 2
DUE DATE: 24 MARCH 2026
, MRL3701 Assignment 2 2026
OPENS FOR SUBMISSION: 13 March 2026
DUE DATE: 24 March 2026
Question 1
What is the intended purpose of section 21 of the Insolvency Act 24 of 1936?
The principal purpose of section 21 of the Insolvency Act is to vest the separate
property of the solvent spouse in the Master and ultimately the trustee on sequestration
so that the insolvent estate is not deprived of assets to which it may be entitled.
This serves three practical aims:
to prevent collusion between spouses aimed at placing assets beyond the reach of
creditors;
to assist the trustee in identifying and administering property that may form part of the
insolvent estate; and
to provide a statutory mechanism for postponement, release or return of solvent-
spouse property where appropriate (so the vesting is not necessarily permanent).¹
1 InsolvencyAct 24 of 1936 s 21; A. Smith, Hockly’s Law of Insolvency, Winding-Up and Business Rescue; see
discussion of purpose and operation of s 21.
