South Africa's new business rescue legislation is contained in Chapter 6 of the Companies Act No. 71 of 2008 and Chapter 6 of the Companies Amendment Act No. 3 of 2011.
Sections 128 to 155 of Chapter 6 of the Companies Act, 2008 and Companies Amendment Act, 2011 are listed in the menu on the left under the following headings:
The purpose of this section is to:
Most changes deals with language, grammatical errors and typos. Changes affecting the meaning of the Companies Act, 2008 are:
The practitioner can now only suspend contracts, and if he/she wishes to entirely, partially or conditionally cancel contracts, court permission is required. This change represents a dilution of the USA Chapter 11 principle originally contained in draft legislation.
This means that apart from accountants and attorneys, turnaround professionals with other degrees may also practise as business rescue practitioners - an amendment that has been vigorously lobbied for by the Turnaround Management Association - Southern Africa and its submissions and discussions with the authors of the legislation.
Note that the above is in line with the Afrikaans text and the Companies Regulations, but that the English text stipulates both belonging to a profession and being licensed as requirements.
Proposed Amendments to New Companies Act. (2010, November 11). Webber Wentzel Attorneys.
Stakeholders Comment on Companies Amendment Bill. (2010, December 2). SabinetLaw.
Bill puts minority shareholders at greater risk - claim. (2010, August 5). Legalbrief
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 Regulations, 2011 (951k).
Part A: Business rescue proceedings
Part B: Practitioner’s functions and terms of appointment
Part C: Rights of affected persons during business rescue proceedings
Part D: Development and approval of business rescue plan
Part E: Compromise with creditors