The concept of providing legal protection to a distressed company, which has a likelihood of survival, was introduced into South African law in 2010, following a global trend towards “business rescue” rather than “liquidation”. It is important to understand the obligations and liabilities facing boards and management when seeking protection in terms of Chapter 6 of the Companies Act, No. 71 of 2008.
We offer advice on the statutory protection offered business in terms of the law as well as the obligations and potential risks.
If we believe that the business can trade out of a distressed position, we will arrange for a practitioner appointment, either internally or from our extensive network of executives and turnaround specialists; the appointment as Business Rescue Practitioner is undertaken in terms of Chapter 6.