Section 341 - Penalties and disabilities

(1) Where an external company or a local manager or process agent of an external company fails to comply with any of the obligations imposed on that external company or that local manager or process agent by sections 330 to 337, the external company and a local manager or process agent that is in default is liable to pay to the Registrar, an administrative penalty of two hundred and fifty penalty units or, in the case of a continuing default, five penalty units for each day during which the default continues.

(2) Where there is a default in delivering to the Registrar a document for registration pursuant to sections 330 to 340, the rights of the external company concerned under or arising out of a contract made in the Republic during the time that the default continues shall not be enforceable by action or any other legal proceedings.

(3) For the purposes of subsection (2),

(a) the external company may apply to the Court for relief against the disability imposed by that subsection and the Court, on being satisfied that it is just and equitable to grant relief, may grant a relief generally or as respects a particular contract and on the conditions that the Court may impose;

(b) that subsection does not affect the rights of any other parties against the external company in respect of the contract;

(c) if an action or a proceeding is commenced by any other party against the external company to enforce the rights of that party in respect of that contract, subsection (2) shall not preclude the external company from enforcing in that action or proceeding by way of counterclaim, set off or otherwise, the rights that external company has against that party in respect of that contract.