CRS Business Rescue

In-depth analysis of the business rescue provisions contained in the Companies Regulations

Regulation 134: Notices concerning business rescue proceedings

(1) Regulation 6 does not apply to the publishing of any notice or information contemplated in this regulation.

Regulation 6: Publishing of notices

Except as specifically required elsewhere in these regulations, a regulatory agency or person required to publish a notice in terms of the Act or these regulations must –

(a) place an advertisement, setting out the notice, in a daily newspaper circulating to the general public within each province in which the relevant company routinely conducts its business activities; and

(b) if the publication is required by a company, it must conspicuously post a copy of the notice at its principal places of conducting its business activities; and

(c) if the publication is required by regulatory agency or a company, it must conspicuously post a copy of the notice -

(i) on its website, if it has one; and

(ii) on SENS, if it is a listed company.

(2) A company that is required to publish a notice in terms of section 129(3) or (4) or section 131(8), must—

(a) deliver a copy of a Notice of Commencement of Business Rescue Proceedings in Form CoR 134.1 to every affected person;

b) conspicuously post a copy of its Notice of Commencement of Business Rescue Proceedings—

(i) at it registered offices, and at its principal places of conducting its business activities;

(ii) on its website, if it has one; and

(iii) on SENS, if it is a listed company; and (c) place an advertisement, with a copy of its Notice of Commencement of Business Rescue Proceedings, in a daily newspaper circulating to the general public within each province in which the company routinely conducts its business activities.

(3) A company that is required in terms of section 129(7) to deliver a notice to affected persons, advising that it has not resolved to commence business rescue proceedings, must deliver to each such person a copy of Form CoR 134 (2).

(4) An applicant in court proceedings, who is required in terms of either section 130(3)(b) or 131(2)(b) to notify affected persons that an application has been made to a court, must—

(a) deliver a copy of a Notice of Application concerning Business Rescue Proceedings, in form CoR 134.3 to each affected person known to the applicant; and

(b) place an advertisement, with a copy of its Notice of Application concerning Business Rescue Proceedings, in a daily newspaper circulating to the general public within each province in which the company routinely conducts its business activities.

(5) A business rescue practitioner—

(a) required to notify affected persons—

(i) of the prospects for business rescue, as required by section 141(2)(b); or

(ii) of the progress of business rescue proceedings, as required by section 132(3)(b); must deliver a copy of a Notice Concerning the Status of Business Rescue Proceedings, in Form CoR 134.4 to each affected person; or

(b) who has filed—

(i) a Notice of Termination of Business Rescue Proceedings; or

(ii) a Notice of Substantial Implementation of a Business Rescue Plan; must deliver a copy of the notice to each affected person, and place an advertisement, with a copy of the relevant Notice, in a daily newspaper circulating to the general public within each province in which the company routinely conducts its business activities.

(6) A business rescue practitioner must give any notice to which a person is entitled in terms of section 144(3), 145(1)(a), 146(a) or 151(2), by— –

(a) serving any such notice as required by section 144(3)(a);

(b) delivering a copy of any such notice to any affected person entitled to receive it, who has not been served in terms of paragraph (a); and

(c) conspicuously displaying a copy of the notice—

(i) at it registered offices, and at its principal places of conducting its business activities;

(ii) on its website, if it has one; and (iii) on SENS, if it is a listed company.

(7) A business practitioner must publish a proposed business rescue plan, as required by section 150(5), by—

(a) delivering a notice of the availability of the plan to every affected person;

(b) conspicuously displaying a copy of the notice of the availability of the plan—

(i) at it registered offices, and at its principal places of conducting its business activities;

(ii) on its website, if it has one; and

(iii) on SENS, if it is a listed company; and

(c) providing without charge a copy of the plan to any affected peson who requrests such a copy.

(8) A person required to file—

(a) A company resolution, as required by section 129, must attach to the resolution a Notice of Commencement of Business Rescue Proceedings, in Form CoR 134.1;

(b) a Notice of Termination of Business Rescue Proceedings, must do so in Form CoR 134.5; or

(c) a Notice of Substantial Implementation of a Business Rescue Plan must do so in Form CoR 134.6.

Note: These draft business rescue regulations will be replaced by new draft regulations - publication date by government unknown.