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SUSPENSION OF OBLIGATIONS DURING BUSINESS RESCUE

SUSPENSION OF OBLIGATIONS DURING BUSINESS RESCUE Once a company commenced with business rescue proceedings the practitioner may in terms of Section 136(2)(a) of the Companies Act suspend the obligations of the company. In the matter of BP Southern Africa (Pty) Ltd v Intertrans Earl SA (Pty) Ltd & Others [2016], the court had to consider [...]

A SECTION 155 COMPROMISE AN ALTERNATIVE TO BUSINESS RESCUE

  A SECTION 155 COMPROMISE AN ALTERNATIVE TO BUSINESS RESCUE Lowvelder Article for 21 April 2017 The Companies Act provides for a company in financial distress to commence with business rescue proceedings in an attempt to rescue the company. However, the Act also makes provision for a company to enter into a compromise or arrangement [...]

SCA finds racial quotas for liquidators unlawful

SCA finds racial quotas for liquidators unlawful 5th December 2016 Bloemfontein – The Supreme Court of Appeal this week found that a racial quota policy implemented for the appointment of liquidators was unlawful and invalid. The SCA ruled on Friday that an appeal against a finding of its unconstitutionality be “dismissed with costs,” upholding the [...]

BUSINESS RESCUE AS AN ALTERNATIVE FOR CREDITORS

BUSINESS RESCUE AS AN ALTERNATIVE FOR CREDITORS Creditors of a company are important role players in any Business and therefore seen as affected persons when it comes to Business Rescue. As soon as a company fails to pay its debt to a Creditor, he may, in terms of Section 131 of [...]

How to Object to Business Rescue

HOW TO OBJECT TO BUSINESS RESCUE 06 April 2015 The filing for Business Rescue by a company in financial distress is regularly perceived by some creditors as purely a delaying tactic and a ploy to postpone the inevitable liquidation of the company. Unfortunately Business Rescue Practitioners, mostly due to a particular [...]