In the current economic climate, where more and more companies find
themselves under financial strain, an effective business rescue system is
essential. A system is needed which affords the company an opportunity to once
again become a successful concern and carry on business on solvent grounds.
South Africa's business rescue provisions is contained in the Companies Act 71
of 2008 and is known as business rescue proceedings. These proceedings
replace the previous rescue model, judicial management, contained in the 1973
Companies Act. Judicial management was largely unsuccessful as a rescue
model. This is mainly due to factors such as the fact that judicial management
was to a great extent dependant on court proceedings, that the court turned it
into an extraordinary remedy and the that liquidators were appointed as judicial
managers.
The new business rescue system notes various improvements to its predecessor
and indicates the development of a true rescue culture in South African law.
Some of these improvements are: the court acts more in a supervisory capacity
than before, the system is more easily available and more accessible to
companies undergoing financial difficulties and the business rescue practitioner
should have experience in turnaround practice according to the new Act. A few
problematic aspects could, however be noted. If rectified it could provide all
interested parties with a valuable remedy.
The true efficacy and success of the new business rescue proceedings would
only be determinable after being tried and the possible practical shortcomings
have been identified and corrected.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ufs/oai:etd.uovs.ac.za:etd-06122014-133813 |
| Date | 12 June 2014 |
| Creators | Jacobs, Lézelle Marianné |
| Contributors | Prof D Burdette, Prof E Snyman-van Deventer |
| Publisher | University of the Free State |
| Source Sets | South African National ETD Portal |
| Language | en-uk |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.uovs.ac.za//theses/available/etd-06122014-133813/restricted/ |
| Rights | unrestricted, I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to University Free State or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report. |
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