Legally Speaking: The Abuse Of Business Rescue: Exploitation Of The Chapter 6 Lifeboat

The mechanism of business rescue introduced in the new Companies Act, No 71 of 2008 (the Act) allows some breathing space for companies facing financial distress. The business rescue procedure allows a business rescue practitioner to step in and keep the company operating (in accordance with an adopted business rescue plan), either to return the company to profitability or to ensure a better return for creditors in comparison to what would be received if the company were to be liquidated. <a href="http://www.kayafm.co.za">kaya fm</a>