Only a court can terminate those proceedings. To receive any credit, subscriber must return all product(s) shipped during the year at their expense within the applicable cancellation period listed above. It’s basically a last-ditch attempt to save a business. The main driver for Chapter 6 and its rescue mechanism was the fact that job retention was perceived by the South African government to be a key aim of business rescue legislation. v Minister of Justice (926/2016) [2017] ZASCA 180(1 December 2017) Coram: Navsa ADP and Bosielo and Majiedt JJA andPlasket and Schippers AJJA Heard: 13 November … Business Rescue Proceedings Business Rescue Proceedings are regulated in terms of Chapter 6 of the Companies Act 71 of 2008 […] This page contains relevant and important information regarding the Business Rescue Proceedings of South African Airways (SOC) Limited (“SAA”, “Company”) On 5 December 2019, SAA was placed under business rescue pursuant to the filing of a resolution in terms of Section 129(1) of the Companies Act 71 of 2008 (“the Act”) on 5 December 2019. Facebook. New Act “Business Rescue”: proceedings to facilitate the rehabilitation of a company that is financially distressed by providing for: 1. However, there is no consensus on the specific statute in which a revamped rescue procedure should be contained — within an Insolvency Act, a Companies Act, or an entirely separate Act. Unfortunately Business Rescue Practitioners, mostly due to a particular set of circumstances, do take on boarder line cases without proper assessment – only to realise at a later stage of the process that no possibility of a rescue exists. 7th April 2021. On 13 March 2020, the CIPC issued a practice note regarding an updated business rescue filing procedure to be followed when placing a company under business rescue. ©2000-2021 ITHAKA. The publication stimulates continued thought and interaction amongst all stakeholders involved in business rescue and restructuring processes. Caroline Southey from the Conversation Africa asked Professor Marius Pretorius to explain how the process works. @ . All Rights Reserved. It should be noted that if the Business Rescue plan has been rejected, the Practitioner is obligated to apply for the company’s liquidation. Shipping and handling fees are not included in the annual price. This publication sets out the law applicable to business rescue procedures in South Africa. It was retained in the South African Companies Act 61 of 1973, even though the Master of the then Supreme Court recommended its abolishment. Looking back to when I started practicing in the world of insolvency (as far back as January 1991), all we had in South Africa for companies that were on the brink of insolvency or financial distress was in fact liquidation. Several shortfalls and weaknesses in the new rescue procedures are identified and certain recommendations for … The password must be 8-50 characters. business rescue procedure is unwarranted in this context. They need to investigate the company’s affairs upon approval of the application. Business rescue proceedings are commenced in one of two ways, voluntarily by way of a board resolution with a majority vote or an affected person may also apply to a court at any time for an order placing the company under business rescue proceedings. The onset of the Covid-19 pandemic in 2020 created a new playing field for the restructuring and business rescue of financially distressed companies. © 2007 Institute of Foreign and Comparative Law CHAPTER_10.3 - Appraisal of Chapter 6 of the 2008 Companies Act, CHAPTER_10.4 - Recommendations for further reform, Companies Regulations, 2011 Selected forms. In South Africa, a company applies for business rescue under Chapter 6 of the Companies Act. After 10 days at the most, they must hold a meeting with creditors, stakeholders, and employees. Like a sick person. If subscribers cancel between 31 and 60 days after the invoice date and return the product at their expense, then they will receive a 5/6th credit of the price for the annual subscription. Speed up your checkout, save your information for future purchases and receive exclusive discounts by registering a secure online account. South African Business Rescue Procedure stimulates continued thought and interaction amongst all stakeholders involved in business rescue and restructuring processes. Dr Levenstein is the Head of Insolvency, Business Rescue & Restructuring Practice at Werksmans Attorneys. That’s why it’s called a pre-insolvency process. Weaknesses in the current legislation and the future of the business rescue process in South Africa are also considered, together with recommendations for change. CILSA is a peer-reviewed academic publication a with an international subscription base. 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