Welcome to the web site of Corporate Renewal Solutions that deals with the turnaround of financially distressed companies in terms of business rescue legislation as contained in Chapter 6 of the Companies Act No. 71 of 2008, amended by the Companies Amendment Act No. 3 of 2011, amplified by business rescue regulations as contained in the Companies Regulations, 2011, and reviewed in the King III business rescue recommendations.
For detail about the current implementation status of new legislation and regulations, see business rescue in South Africa.
In 1926 South Africa was the first country after the USA to have introduced business rescue legislation. Judicial management, however, proved to be ineffective and on 1 May 2011 was replaced with the business rescue provisions in Chapter 6 of the new company legislation.
Chapter 6 business rescue legislation represents a codification of the turnaround procedures followed in workout in the informal sector, but is designed to overcome a number of practical problems faced by workout, and to protect the interests of all stakeholders. It comes with its own problems though, and financially distressed companies will always have to make the choice between informal turnaround (workout) and Chapter 6 turnaround (business rescue) based on the specific circumstances they face.
For more information, see business rescue versus workout.
That notwithstanding, new business rescue legislation implemented on 1 May 2011 represents an important new era in the South African turnaround industry with the potential of saving many more financially distressed but economically viable companies from liquidation.
Corporate Renewal Solutions (CRS) is proud to have sponsored 50% of the final editing cost of this prestigious book.
Ntombi Langa-Royds, chair of CRS, contributed the chapter "Human Resources Leadership in a Turnaround".
Jan van der Walt, CEO of CRS, contributed the following four chapters:
"The Turnaround Management Association - Southern Africa (TMA-SA)".
"Operational Aspects of a Turnaround".
"A Turnaround Practitioner's View on New Business Rescue Legislation".
To obtain more information about this book and where to purchase it, see Turnaround Management and Corporate Renewal.
Please complete the Business rescue client submission form.
We will respond with an opinion on the appropriate approach for you to take, implications that you should be aware of, the procedure to follow to commence business rescue, appointment of the business rescue practitioner, and costs involved.
CIPC is registering business rescue practitioners on an interim license basis where a company in business rescue identifies the practitioner by name. For more information, see Business rescue implementation and operational status in South Africa.
Those interested in attending our Business Rescue and Turnaround Management Masterclasses should please email Jan van der Walt at for purposes of a provisional attendance list.
Did new business rescue legislation implemented on 1 May 2011 flowed impacted on the decreased liquidations statistics in the first month?
For more information, see Liquidations statistics.
10 July 2011
Quoted in Sunday Times:
27 May 2011
Launch of Neil Harvey's book Turnaround Management and Corporate Renewal: A South African Perspective.
Chapters contributed by Jan van der Walt:
26 May 2011
Managing a Turnaround and Corporate Renewal
Venue:Wits Business School, 2 St. David's Place, Parktown, Johannesburg, 2183
"A Turnaround Practitioner's View on New Business Rescue Legislation"
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This will also allow you to ask questions and participate in debates on business rescue.
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