Masters Degrees (Mercantile Law)

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Browsing Masters Degrees (Mercantile Law) by Author "Burdette, D."

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    'n Regsvergelykende analise van geregtelike bestuur en ondernemingsredding ingevolge relevante maatskappywetgewing
    (University of the Free State, 2012-01) Jacobs, Lézelle Marianné; Snyman-Van Deventer, E.; Burdette, D.
    English: In the current economic climate, where more and more companies find themselves under financial strain, an effective business rescue system is essential. A system is needed which affords the company an opportunity to once again become a successful concern and carry on business on solvent grounds. South Africa's business rescue provisions is contained in the Companies Act 71 of 2008 and is known as business rescue proceedings. These proceedings replace the previous rescue model, judicial management, contained in the 1973 Companies Act. Judicial management was largely unsuccessful as a rescue model. This is mainly due to factors such as the fact that judicial management was to a great extent dependant on court proceedings, that the court turned it into an extraordinary remedy and the that liquidators were appointed as judicial managers. The new business rescue system notes various improvements to its predecessor and indicates the development of a true rescue culture in South African law. Some of these improvements are: the court acts more in a supervisory capacity than before, the system is more easily available and more accessible to companies undergoing financial difficulties and the business rescue practitioner should have experience in turnaround practice according to the new Act. A few problematic aspects could, however be noted. If rectified it could provide all interested parties with a valuable remedy. The true efficacy and success of the new business rescue proceedings would only be determinable after being tried and the possible practical shortcomings have been identified and corrected.