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An introduction to business rescue

2nd October 2013

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Companies are in constant cycles, the highs, the lows and the break-evens. It is part of business and smaller businesses tend to be in more lows when starting-up. It is the reality of business to experience these cycles. It is also true that entrepreneurs choose different options to deal with these cycles, some succeed and some do not. When your business seems to be going pear-shaped and the realities of no immediate recovery seems imminent, the Companies Act 71 of 2008 (the “Act”) imposes a statutory obligation on the board of the company to inform each affected person as to why the company has not adopted a resolution to place the company in business rescue.

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Written by Written and prepared by Kirith P. Haria
Bouwer Kobeli Morabe Attorneys

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