July 2010: Accreditation of professions and licensing of business rescue practitioners

May 2010: Reckless trading and the personal liability of directors

May 2010: Final business rescue legislation

May 2010: Book: Turnaround Management and Corporate Renewal - a South African Perspective - Edited by Neil Harvey

The process for accreditation of professions is still under way.  An accreditation model will be developed and round table discussions with reference groups will take place in July.

The licensing of individuals to act as business rescue practitioners has started, and as an interim measure conditional licenses are granted.

In the interim all businesses that make a decision to start rescue proceedings can file notices prescribed in the Act with the CIPC and identify a prospective practitioner that will be considered to be licensed on an urgent basis.

Such interim licences will be granted for a limited period and will relate only to that specific business.  Several licences granted on this basis have been issued.

CIPC also further decided that an extension and condonation of time limits in regard to appointment of business rescue practitioners will be granted, as prescribed under Regulation 166 (1) of the regulations published on 26 April 2011, in cases where suitable rescue practitioners cannot be appointed in time.

Accreditation of professions and licensing of business rescue practitioners are addressed in detail at Registration as a business rescue practitioner, especially in the following two subsections:

• Status of accreditation of professions and licensing of business rescue practitioners.
• The official CIPC business rescue practitioner registration application process for interim licensed business rescue practitioners.

One article and one publication have been published on the topic of reckless trading and personal liability of directors:

Temkin, S. (2011, May 30). Errant Directors Face Delinquency Orders. BusinessDay.

Levenstein, E. (2011, May). The New Companies Act, No. 71 of 2008 – Reckless Trading and the Personal Liability of Directors. Werksmans Attorneys.

Final business rescue legislation associated with the new Companies Act can be downloaded by following these links:

• Business rescue provisions in Chapter 6 of the Companies Act No. 71 of 2008 (323k).
• Ondernemingreddingbepalings in Hoofstuk 6 van die Maatskappywet No. 71 of 2008 (333k).
• Business rescue provisions in Chapter 6 of the Companies Amendment Act No. 3 of 2011 (279k)
• Business rescue provisions in Chapter 6 of the Companies Amendment Act No. 3 of 2011 (English/Afrikaans version) (792k)
• Business rescue provisions in Chapter 6 of the unofficial LexisNexis Consolidated Companies Act (105k)
• Business rescue provisions in Chapter 6 of the Companies Regulations, 2011 (62k)
• Companies Act No. 71 of 2008 (829k).
• Mastskappywet No. 71 of 2008 (545k).
• Companies Amendment Act No. 3 of 2011 (2 000k).
• Companies Amendment Act No. 3 of 2011 (English/Afrikaans version) (5 920k).
• Unofficial LexisNexis Consolidated Companies Act (945k).
• Companies Regulations, 2011 (951k).

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)".

"Turnaround Situations".

"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.

 

 

 

 

 

 

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