South African company law has provided for the rescue of financially distressed
companies since 1926 when the statutory procedure of judicial management was
introduced by the Companies Act 46 of 1926. Unfortunately, judicial management
has never been regarded as a successful corporate rescue procedure and for most
of its existence it has been severely criticised on many grounds. The Companies Act
61 of 1973 that replaced the Companies Act 46 of 1926 did very little to improve this
situation and judicial management remained underutilised. As a result, the
Companies Act 71 of 2008 now introduces two newly-created corporate rescue
procedures in the form of business rescue proceedings and the compromise with
creditors.
This study analyses judicial management and the new corporate rescue
procedures to establish whether the identified weaknesses of judicial management
have been adequately and effectively addressed in the new procedures. A
comparative study with similar procedures in England and Germany is undertaken
to determine whether the South African legislature has delivered on its promise to
create a system of corporate rescue that will meet the needs of a modern South
African economy.
Several weaknesses in the new procedures are identified and a number of
recommendations are made to improve the relevant provisions and to assist in
providing South African company law with an efficient and acceptable corporate
rescue regime. / Mercentile Law / LLD (Mercentile Law)
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:uir.unisa.ac.za:10500/3575 |
| Date | 02 1900 |
| Creators | Loubser, Anneli |
| Contributors | Smith, A.D. (Prof.) |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 1 online resource (xi, 411 leaves) |
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