Business Act

BUSINESS RESCUE AND LANDLORDS

Business rescue and landlords Most companies lease properties to conduct their business and landlords are often the first to realise that their tenants are facing financial difficulties. Not so long after the tenant’s failure to pay rent, landlords find themselves with tenants which commenced with business rescue, wanting to evict them from their premises. Section [...]

ANOTHER STATE-OWNED AIRLINE PLACED INTO BUSINESS RESCUE

Another state-owned airline placed into business rescue A couple of months after South African Airways (SAA) was placed into business, another state-owned airline, SA express, was also ordered to begin business rescue by the Johannesburg High Court on 6 February 2020. This comes after one of its creditors filed an application in terms of section [...]

NON-PAYMENT OF SALARIES BY EMPLOYER UNDER BUSINESS RESCUE

Non-payment of salaries by employer under business rescue In this week’s article, we will deal with the procedure as well as the appropriate forum (Labour Court or High Court) to approach when employees seek an order compelling their employer, who’s under business rescue, to pay all the unpaid remuneration during business rescue proceedings. The jurisdictional [...]

BUSINESS RESCUE & RESERVATION OF OWNERSHIP

BUSINESS RESCUE & RESERVATION OF OWNERSHIP Since the inception of business rescue proceedings, there is uncertainty in respect of the rights of creditors they previously enjoyed. One of these rights is ownership in movable assets. Often creditors reserve ownership in moveable assets in case the debtor is unable to pay. Business rescue practitioners often dispute [...]

SINK OR SWIM – BUSINESS RESCUE

SINK OR SWIM – BUSINESS RESCUE Lowvelder article for 27 January 2017. Restructuring of companies in financial distress is on the increase. In South Africa, Chapter 6 of the Companies Act introduced business rescue as an opportunity for financially distressed companies to file for a formal restructuring process, aimed at rehabilitation and enabling them to [...]

THE REMUNERATION OF BUSINESS RESCUE PROCEEDINGS

THE REMUNERATION OF BUSINESS RESCUE PROCEEDINGS A question often raised is what are the costs involved in the event that a company commence with business rescue proceedings. The current basic remuneration of a business rescue practitioner, as contemplated in section143 of the Act is: R1 250 per hour, to a maximum [...]

THE EFFECT OF BUSINESS RESCUE ON DIRECTORS OF THE COMPANY

THE EFFECT OF BUSINESS RESCUE ON DIRECTORS OF THE COMPANY 29 July 2016 In previous articles, we discussed that it is the duties of directors of a company which is in financial distress to commence with business rescue proceedings. The focus of this article is what the effect will be of [...]

How is a Company placed in Business Rescue?

HOW IS A COMPANY PLACED INTO BUSINESS RESCUE? 15 June 2016 The directors of a company, which will not be able to pay its debts in the immediately ensuing six months, has an obligation to make a decision whether or not the company will commence with business rescue proceedings. In the [...]