Business Rescue: Giving Your Business That Much-Needed Breathing Space from Creditors

The Companies Act No. 71 of 2008 offers a remedy to companies that are indeed financially distressed but have the belief that there are reasonable prospects for rescuing the business, via the election to place themselves in voluntary business rescue. By a company electing to pursue the business rescue process, it will galvanise and facilitate the rescuing and rehabilitation of its cash-strapped business.

 

The Effects of Business Rescue on Employees and Employers

The devastating economic effects posed by the Corona Virus Disease 2019 (COVID-19) have left many South Africans wondering whether their jobs are on the line and many business owners fighting against the odds to ensure their businesses’ survival. One way to negate the adverse financial threats presented by the rapid spread of this virus on employers and employees is by placing ailing companies under Business Rescue.

 

COVID-19 and the COID Act: What You Should Know Before You Compel Your Employees to Work During Lock Down
 

Before you compel your employees (including but not limited to your domestic worker, caretaker or gardener) to attend to work during these risky times, you should be aware of the potential consequences that you might face as a result. This article takes a look at the Compensation for Occupational Injuries and Diseases Act (“COIDA”) (“the Act”) as it relates to employees compelled to attend work during the initial lockdown and period thereafter.
 

 

A Guide to the Intergovernmental Fintech Working Group Position Paper on Crypto Assets
 

This article will summarise the key points of the Intergovernmental Fintech Working Group’s (“the IFWG”) position paper, highlighting the risks associated with crypto assets, and the IFWG’s proposed recommendations as to the manner in which the South African financial regulatory framework can be adapted and expanded to include crypto assets and manage the associated risks.
 

 

COVID-19: The Protection of Personal Information and Cyber Security
 

As the year progresses, where possible, businesses will be forced to continue working remotely which for most, means moving much of their business online. A further complicating factor is the proposed 2020 enactment of the remaining provisions of the Protection of Personal Information Act No. 4 of 2013 (“POPI”), which will see businesses having to institute further security measures to protect their customers’ private information or risk penalties and/or imprisonment.

 

COVID-19: A guide to the Retrenchment Process
 

Since the start of the national lockdown, the Minister of Employment and Labour has been proactive in providing employers with alternative solutions to avoid retrenching employees. However, the negative economic impact caused by the Covid-19 pandemic may be so severe that employers may still have no choice but to embark on a retrenchment process. This article will take a closer look at the consultation process envisaged in section 189, with a particular focus on the proposed method for selecting which employees to dismiss.

 

 

 

 


The coronavirus (COVID-19) global pandemic has brought additional strain to an already struggling South African economy. IQbusiness, Schindlers Attorneys, Engaged Business Turnaround, Sirdar Group and Envision have formed a consortium to bring their extensive legal, accounting, technology and business turnaround expertise to help businesses in financial distress.
 
Together, these businesses have launched a crisis management centre called the COBRA (Covid Business Rescue Assistance) War Room. The initiative aims to assist and sustain South African businesses through the Covid-19 crisis with free services to help them receive coordinated bank, government and stakeholder support.  If required, a structured business rescue process can be initiated, with the objective of rehabilitating affected companies.

 

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