Does the role of a business rescue practitioner necessitate the imposition of fiduciary duties and liabilities to the same degree as directors of a company?
Date
2022
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
Business rescue practice is a legislative mechanism in terms of Chapter 6 of the Companies Act 71 of 2008 (“the Act”), aimed at rehabilitating failing companies. Business rescue proceedings (“proceedings”) are defined as the ‘[facilitation of the] rehabilitation of a company that is financially distressed’.1 This is achieved through the temporary supervision of the company by the business rescue practitioner (“practitioner”), as well as a temporary moratorium on the rights of claimants. The goals of business rescue proceedings are to either rehabilitate the company to operate on a solvent basis, or to secure a better return for creditors upon the company’s liquidation.2 The ultimate manner of rehabilitation of a company is set out in the business rescue plan drafted by the practitioner and voted on by affected parties3 as envisaged in the Act
Description
A research report submitted in partial fulfillment of the requirements for the degree of Master of Laws by Coursework and Research Report at the University of the Witwatersrand, Johannesburg, 2022
Keywords
Liability, Business Rescue Practitioner, Fiduciary Duties of Business Rescue Practitioner, Business Rescue, UCTD