Registration as a business rescue practitioner

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

• A member in good standing of a legal, accounting or business management profession accredited by the Companies and Intellectual Properties Commission (CIPC), or;
• Licensed as such by the Companies and Intellectual Properties Commission (CIPC):
  • Regulation 126 of the Companies Regulations, 2011: licensing of business rescue practitioners describes the broad application process to be licensed.
  • The detailed process for interim licensing are described below in The official CIPC business rescue practitioner registration application process for interim licensed business rescue practitioners.

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.

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.

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.

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