This page will analyse the rights of and advice to affected persons regarding Chapter 6 business rescue.
CIPC is licensing business rescue practitioners on an interim basis.
CIPC has decided to grant extension and condonation of time limits in regard to appointment of business rescue practitioners.
For more information, see Registration of business rescue practitioners.
To be registered as a interim licensed business rescue practitioner, a prospective business rescue practitioner must have himself or herself identified as the earmarked business rescue practitioner in an official letter addressed to CIPC from the party commencing business rescue proceedings, requesting licensing on an urgent basis:
Failure to have an interim licensed business rescue practitioner registered by CIPC will lead to business rescue applications from companies or close corporations to be opposed by affected persons in terms of section 130: Objections to company resolution, or for court orders in terms of section 131: Court order to begin business rescue proceedings not to be granted.
For instance, Judge Hatting, in Standard Bank vs. Major Trucking case number 2011/23891, a voluntarily section 129 business rescue opposed through section 130, ruled on 30 June 2011 that procedurally, business rescue can only commence when CIPC has accredited professions or licensed business rescue practitioners.
He did not know, however, that business rescue practitioners are already licensed, since Major Trucking did not apply at CIPC for its earmarked business rescue practitioner to be licensed on an urgent basis.
CIPC has decided to grant extension and condonation of time limits in regard to appointment of business rescue practitioners, as prescribed under Regulation 166 (1) of the Companies Regulations, 2011, in cases where suitable rescue practitioners cannot be appointed in time.
(1) The senior officer of a regulatory agency may generally extend any particular time limit set out in the Act or these regulations for filing any document with that agency, to the extent necessary or desirable having regard to the public demand for access to the agency’s services, the administrative capacity of the agency to meet that demand, and the interests of efficiency and equality of access.
(2) On good cause shown, the recording officer of a regulatory agency may condone late performance of an act in respect of which the Act or these regulations prescribe a time limit, other than a time limit that is binding on the regulatory agency itself.
The extension and condonation of time limits in regard to appointment of business rescue practitioners, whilst operative, has, however, not been officially published yet.