The Company That Owes Me Money Has Been Liquidated, Now What?
Commissions of Enquiry as set out in Sections 415 and 417/418 of the Companies Act serve as a vital tool for unveiling and unravelling possible misconduct or mismanagement within a company, prior to liquidation. Through these enquiries, a liquidator or creditor can confidentially gather crucial information essential for winding up the company’s affairs, which may […]
Tackling the Tough Times: Proactive Strategies for Businesses Facing Financial Difficulties
In the midst of South Africa’s current economic rollercoaster, businesses, both big and small, are facing their fair share of challenges. Think frequent power outages, rising interest rates, along with never-ending petrol price and interest rate hikes. These obstacles are enough to make anyone’s head spin and so it becomes imperative for businesses to adopt […]
The Benefits of Commercial Mediation
The eerily similar nature of two matters that I was involved in was ample motivation to prepare this short case study. Both cases involved disputes amongst shareholders related to matters of corporate governance and significant trust deficits among the parties involved, and who were deadlocked as to the future management of the company. Rule 41A […]
Inner-City Living: When Is Noise Just Noise and Not a Nuisance?
We all live in a world of noise. Our cities reverberate with the cacophony of urban development, construction and traffic – music filtering from bars and restaurants, ringtones, taxis hooting, dogs barking and people shouting. Whilst some noise is tolerable there are instances where it becomes a nuisance or is disturbing; where it intrudes on […]
Financially Stressed Homeowners to Engage Banks Before Forced Foreclosures
Between April and June last year, 1.6 million South Africans applied for mortgage payment holidays from their banks. While this provided some form of temporary relief, it is now costing them, on average, an additional R12 900 a month due to having to pay up on interest accrued, pushing many South Africans further into […]
Business Rescue Increases Amongst SMEs and Corporates
CNA is the latest in a string of high profile brands that have gone, or are considering going into business rescue, following in the footsteps of Ster Kinekor, Edcon, Comair and SAA. Business rescue is also on the increase in the SME sector, as many suffer from financial distress. […]
Insolvency & Restructure in the Post-Pandemic World: The Role of Liquidation & Business Rescue
Introduction The COVID-19 global pandemic and the various national lockdowns that have been imposed in South Africa as a result will undoubtedly cast a long shadow over this country’s economy. Predictions of economic hardship as a result of recession, reduced productivity and increased unemployment can still be found in almost every major news publication. In […]
No Ducking and Diving – Stick to the Rules of Insolvency
The COVID crisis has had an overwhelming impact on local business with corporate South Africa struggling to keep its head above water and the wolves at bay. With no clear indication as to how the lockdown process will further impact businesses in the coming months, an understanding of the law of insolvency can provide much […]
Business Rescue, Liquidation or Survival – Time to Make the Call?
Big corporation or small enterprise – no business is immune to the current financial disaster 2020 has chauffeured in. We’ve seen the business rescue troubles of SAA unravel before our locked-down eyes, EDCON and Comair sending up an SOS flare and reports of indeterminable businesses (small and large) staring down the barrel of the COVID-19 […]
Compromising With Creditors
(in terms of section 155 of the Companies Act) Introduction – Purpose The purpose of this section of the Companies Act (Act 71 of 2008) is to allow for a company to make an agreement of compromise with its creditors without going into liquidation or being wound up or as an alternative to, […]