91 results found

Business Rescue Practitioners in South Africa wield significant powers over distressed companies, but when does their conduct cross the line into personal liability? Explore the legal boundaries between commercial judgment and gross negligence, and discover how recent case law protects practitioners acting in good faith while holding accountable those who act recklessly or fraudulently.

The year 2020 was not business as usual as the outbreak of the new COVID-19 virus disrupted and tested the resilience of global economies, health systems, supply chains, industries and businesses.

The worldwide economic meltdown caught many businesses unaware. Gearing quickly became over-gearing, leverage -- instead of being a catapult for new -- wealth -- became a noose, and business leaders had to scramble to keep their companies alive.

The Competition Tribunal has recently heard and approved an acquisition by Stefanutti Stocks Proprietary Limited of all the assets which comprise the business carried out by Energotec, a division of First Strut Limited t/a the First Tech Group.

Company A owed rent to Company B and a large amount of unpaid tax to the South African Revenue Service (SARS). A was liquidated but had no assets because an associated company C had taken over its assets without paying for them.

When banks advance funds to clients prior to the lodgement of a mortgage bond at the Deeds Office, they must take cognisance of the effect of Section 88 of the Insolvency Act.

With so many businesses facing financial distress as a consequence of the economic fall out of the past 18 months brought about by the COVID-19 pandemic...

Imagine you lend money to someone, securing this loan with a bond on their property. But what if the borrower can't repay and becomes insolvent? This is when Section 88 of South Africa's...

The Supreme Court of Appeal ("SCA") recently handed down judgment in Prinsloo v Majiedt N.O. and Another, addressing the protection of benefits of long-term life insurance policies under section 63...

In a previous article, I commented on the trend in South African courts that the judges are saying that there must be a detailed, proposed business rescue plan before any application for business rescue will be granted.

With the introduction of business rescue by the new Companies Act (which came into effect on 1 May this year), a company director is obligated to either pass a resolution for business rescue or for liquidation, as soon as he or she becomes aware that the company is trading in a financially distressed situation or notify all stakeholders of the basis for not doing so.

There are many circumstances in which a person who disputes a debt nonetheless feels that he or she has no choice but to pay or to sign an undertaking to pay.

The without prejudice rule has long been part of South African law. This rule provides that statements, including admissions of liability, made in an attempt to settle litigation between parties.

Case Note: Montic Dairy (Pty) Ltd and Others v Mazars Recovery and Structuring (Pty) Ltd and Others (7523/19) [2021] ZAWCHC 20 (10 February 2021)...

It is imperative that companies in financial distress prioritise their continued existence and consider business rescue as an alternative to liquidation.

The collapse of Hanjin, the world's seventh largest shipping container carrier, and its immediate impact in South Africa and its shipping industry, remains to be seen.

When a company is placed under business rescue, the question arises as to the enforceability of a suretyship given for the debts of or by the company.