Business rescue steps

Business rescue steps

 

Who does what?

 Action By Whom Further information
1 Cash flow issues become critical; agitated creditors demand immediate action Creditors “Don’t leave it too late!”
2 Unsure of solution / look for help Shareholders/management Rescue your business in three months
3 Decide on Business Rescue and contact / file notice with CIPC Shareholders/management / secretarial advisor/ accountant / auditor www.cipc.co.za/index.php/manage…business/…/business-rescue/
4 Debt moratorium commences  N/A Section 133 of Chapter 6 of Companies Act
5 Appoint Business Rescue Practitioner and advise affected persons Company/ secretarial advisor/ accountant / auditor
6 Provide Practitioner with all info Management
7 Assume control of Company and investigate matters Practitioner Section 140(1)(a) of Chapter 6 of Companies Act
8 Meet creditors and employees Practitioner
9 Develop and publish Business Rescue Plan for approval by creditors (and Shareholders if applicable) Practitioner
 10 Approval of Business Rescue Plan Creditors (and Shareholders if applicable)
11 Implement Business Rescue Plan Practitioner
12 If Business Rescue Plan not approved – liquidation follows Practitioner / Liquidator