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.
