CRS Business Rescue
Overview of business rescue in South Africa - the context, process, and stakeholders

Registration as a business rescue practitioner

Read the following before applying for registration as a business rescue practitioner

Section 138: Qualifications of practitioners requires a business rescue practitioner to be either:

Regulation 127: Restrictions on practice classifies business rescue practitioners into three categories - irrespective of whether registered on the grounds of belonging to an accredited profession or licensed:

  • Senior business rescue practitioner: 10 years or more of business turnaround practice experience.
  • Experienced business rescue practitioner: more than 5 years but less than 10 years of 10 years of business turnaround practice experience.
  • Junior business rescue practitioner: No or less than 5 years of business turnaround practice experience.

Section 143: Remuneration of practitioner allows for:

  • A tariff of fees for business rescue practitioners (see Regulation 128 below), and
  • Further additional remuneration, to be calculated on the basis of a contingency related to:
    • The adoption of a business rescue plan at all, or within a particular time, or the inclusion of any particular matter within such a plan; or
    • The attainment of any particular result or combination of results relating to the business rescue proceedings.

Regulation 128: Tariff of fees for business rescue practitioners prescribes the basic remuneration of business rescue practitioners according to size of financially distressed company as defined by the public interest score

The maximum rates that can be charged, irrespective of classification of business rescue practitioner, are:

  • Small company: R1250 per hour VAT included.
  • Medium company: R1500 per hour VAT included.
  • Large company: R2000 per hour VAT included.

Business rescue implementation and operational status in South Africa

See Business rescue implementation and operational status in South Africa for an overview of the status of accreditation of professions and licensing of business rescue practitioners.  

In both cases, the process is still under way.

As an interim measure, however, licenses are granted on an temporary basis to qualifying applicants identified as the business rescue practitioner to be a appointed in a business rescue by the company or close corporation entering or already in business rescue, and only for those specific business rescues.  The application process is described below.

Official CIPC business rescue practitioner registration application process for interim licensed business rescue practitioners

The official CIPC business rescue practitioner registration process

COMPANIES ACT 71 OF 2008

BUSINESS RESCUE PRACTITIONERS APPLICATION REQUIREMENTS

Applications for licenses to serve as a business rescue practitioner must be made to the Commission by filing Form CoR 126.1 and paying the prescribed fee as set out in Table CR 1 that is currently R500. Payment can be done once registered as a customer through the website or directly at the cashiers of the CIPC.

Form CoR126 must be accompanied by the following information and have the required documents attached thereto:

  • A comprehensive resume containing full and detailed particulars of the applicant’s history and relevant practical experience in business turnaround practice.
  • Motivation to substantiate the specific group or category that the applicant wishes to be licensed for clearly demonstrating relevant experience for a:
    • Senior practitioner (combined period of at least 10 years).
    • Experienced practitioner (combined period of at least 5 years).
    • Junior practitioner (means a person who is qualified, and who, immediately before being appointed as practitioner for a particular company, has either:

      a) not previously engaged in business turnaround practice before the effective date of the Act, or acted as a business rescue practitioner in terms of the Act; or

      b) has actively engaged in business turnaround practice before the effective date of the Act, or as a business rescue practitioner in terms of the Act, for a combined period of less than 5 years.

  • Evidence to substantiate the factual information in respect of your history and relevant practical experience.
  • Provide applicable references that relate to the years of experience required for the specific group applying for.
  • Certified copies of suitable educational qualifications that will sufficiently demonstrate that you are equipped to perform the functions of a business rescue practitioner.
  • Registration number/s that reflects membership of relevant professional body or bodies.
  • Certified copy of your Identification Document or Passport.
  • Contact details containing an e-mail address and cell phone number.

Once all relevant information has been received, it will be considered and recommendations will be made to the Commissioner on whether or not an applicant should be issued with a license and/or what possible conditions ought to be included if a license is recommended.

Enquiries can be forwarded to the following dedicated e-mail address: businessrescue@cipc.co.za.

Notes on the official CIPC business rescue practitioner registration process

In addition to the listed requirements, submit an official letter to CIPC from the company commencing business rescue proceedings

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 company or close corporation commencing business rescue proceedings, requesting licensing on an urgent basis:

Download the application form

The business rescue practitioner application Form CoR 126.1 can be downloaded from Application for license as a Business Rescue Practitioner.  If the application is successful, CIPC will issue a Certificate of Practitioner license.

How to pay the registration fee as a CIPC customer

Payment of the R500 fee by registering as a customer of CIPC:

  • Register as a CIPC customer at CIPC Customer Registration.
  • Log in with your username and password.
  • Deposit R500 into your CIPC virtual bank account.  See CIPC Banking Details.
  • Make payment.  If this is not possible, provide your customer details with your application so that CIPC can make the payment from your virtual bank account.

CIPC business rescue contact details

Email: businessrescue@cipc.co.za.

Call Amanda Lotheringen at 012 394 1512 (work) or 082 497 4605 (cell).

What the Form CoR 126.1 Application for a business rescue practitioner's license looks like

Click on the thumbnail below

 

Application form for a business rescue practitioner's license

Download the application form CoR 126.1 at Application for license as a Business Rescue Practitioner.

What the Form CoR 126.2 Practitioner's license certificate looks like

Click on the thumbnail below

 

Business rescue practitioner's license certificate

Download the form CoR 126.2 at Certificate of Practitioner license.

Bear in mind though that CIPC completes and signs this form.

References

Professional web sites

LSSA to Ask CICP to Accredit Attorneys as Business Rescue Practitioners. (2011, June). Law Society of South Africa.

Van der Walt, J. (2011). Business rescue implementation and operational status in South Africa. CRS Business Rescue.

Van der Walt, J. (2011). The business rescue practitioner. CRS Business Rescue.

Van der Walt, J. (2011). Section 138: Qualifications of Business Rescue Practitioners. CRS Business Rescue.

Van der Walt, J. (2011). Section 143: Remuneration of practitioner. CRS Business Rescue.

Van der Walt, J. (2011). Regulation 123: Notices to be issued by a company concerning its business rescue proceedings. CRS Business Rescue.

Van der Walt, J. (2011). Regulation 124: Notices to be issued by affected persons concerning court proceedings. CRS Business Rescue.

Van der Walt, J. (2011). Regulation 125: Notices to be issued by practitioner concerning business rescue proceedings. CRS Business Rescue.

Van der Walt, J. (2011). Regulation 126: Accreditation of professions and licensing of business rescue practitioners. CRS Business Rescue.

Van der Walt, J. (2011). Regulation 127: Restrictions on practice . CRS Business Rescue.

Van der Walt, J. (2011). Regulation 128: Tariff of fees for business rescue practitioners. CRS Business Rescue.

Media articles

Weavind, T. (2011, July 9). Creditors Aim to Cash in on New Business Rescue Provisions. Business LIVE.

Weavind, T. (2011, July 9). Turnarounds: Does Business Rescue Have the Right Remedy. Times LIVE.

Forms

Form CoR 126.1 Application for a practitioner's licence.

Form CoR 126.2 Certificate of Practitioner license.


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