Business rescue

Business rescue

 

Business rescue is a legal process regulated by the Companies Act that allows for registered business rescue practitioners to turn around a company that is in a foreseeable financial distress and will be for the next 6 months

The process of business rescue is an attempt to recover a failing business before liquidation is implemented or considered

When board directors of a company realizes that a company is ailing and will not recover whithin the next 6 months they are obligated to:

Put the company under business rescue, or

In writing notify all shareholders, trade unions, creditors as well as employees why the business should not be placed under business rescue

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