Business rescue steps
Who does what? |
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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 |