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Avoid this one business rescue mistake that cost Mr Madodza thousands

by , 07 March 2014
Mr Madodza couldn't believe his ears that morning in the High Court. The Judge allowed the Sheriff of Nelspruit to remove his vehicles, even though Section 133(1) (Companies Act) protects businesses from creditors during business rescue. And Mr Madodza was undergoing business rescue. So what happened? The small mistake he made, was that he didn't follow the correct steps to appoint his business rescue practitioner!

Don't let this happen to you! Let's have a look at the one right way to appoint a business rescue practitioner so you're 100% protected by business rescue and don't land up in Mr Madoza's shoes.

Do you know why Gail doesn't spend R10 000 a month on bookkeeping fees?

Gail is a GP who's just opened her own private practice. Because she's trying to save money on admin costs, she is doing her books herself.

She thinks: 'How hard can it be?' The answer: 'It's very hard unless you've got the right tools at your fingertips!' Well, I found just such a tool. It has everything from checklists about how to prepare for an audit, to detailed explanations about financial statements and even a step-by-step guide to business rescue.

Find out more about my newly-discovered one-stop accountancy resource now on special with a R1 000 discount until 17 March 2014!
The one right way to appoint a business rescue practitioner
Once you've filed for business rescue, you must appoint a business rescue practitioner within two days. This is the one thing that Mr Madodza got wrong. And it made him lose the court application.
Let's have a close look at exactly how to appoint the business rescue practitioner…
The one legally correct way to appoint a business rescue practitioner

Fill in a CoR123.2 form and submit this to the CIPC. This shows who you have appointed as a business rescue practitioner. Go to here to download this form.

Until next time...

Philip Rosenberg
Managing Editor, Practical Accountancy Loose Leaf

P.S  Is your business insolvent? If your business is insolvent and still trading, you can restructure and reorganise it to keep it from going under.

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