Jul 31, 2024 | Business Rescue
Before the Companies Act of 2008 (“the Act”), creditors seeking to enforce their claims against a company could either issue summons or initiate liquidation proceedings to recover their debt. With the introduction of business rescue proceedings under the Act,...
Jul 1, 2024 | Business Rescue
The Companies Act recognizes shareholders as key participants in Business Rescue proceedings, granting them the locus standi to initiate such proceedings under section 131. This recognition ensures that shareholders can actively engage in and influence the rescue...
May 30, 2024 | Business Rescue
In many cases, concurrent creditors do not receive any dividend payments when a company is liquidated. This outcome is due to the ranking order of creditors, which influences the distribution of dividends. Creditors are classified into two categories: secured and...
Mar 25, 2024 | Business Rescue
It is customary for credit providers to require security before extending credit, with security typically categorized as either real or personal. This article focuses solely on personal security. A creditor holding personal security is entitled to seek recourse from a...
May 7, 2021 | Business Rescue
In terms of section 152 of the Companies Act a proposed Business Rescue Plan must be approved by more than 75% of its creditors. Should a plan be rejected due to a creditor who is unreasonable, the practitioner may apply to court to set aside the vote on the grounds...
May 7, 2020 | Business Act, Business Rescue
It is trite in the business world that directors, or any other person normally conclude a suretyship agreement with a creditor on behalf of a company. A question then arises as to what is the position of a surety for a company in business rescue (BR)? Does the surety...
