What you need to know about the duration of business rescue proceedings
In this article, we briefly explained about the duration on business rescue details.
We told you that the Companies Act makes provision for a three-month period, but it can be extended in special circumstances.
Now we're going to give you more details on the duration of business rescue proceedings, when they start and when they end.
According to iThemba Governance and Statutory Solutions, business rescue proceedings start when a company files a resolution for voluntary business rescue proceedings or applies to the court for consent to file such a resolution.
Business rescue proceeding can also begin when an affected person applies to the court for an order placing the company under supervision.
'A court can make an order placing a company under supervision during the course of liquidation proceedings, or proceedings to enforce a security interest.'
Please note that the proceedings can only start when such an order is granted by the court.
Business rescue proceedings come to an end under these circumstances:
The site explains that business rescue proceedings end when:
What happens if business rescue proceedings don't end within three months?
iThemba Governance and Statutory Solutions explains that if a company's business rescue proceedings have not ended within three months after the start thereof, the business rescue practitioner must prepare a monthly report on the progress of the proceedings.
He must do this until the business rescue process comes to an end. The report is intended for people affected by the proceedings, the court (if subject to a court order) and the Companies and Intellectual Property Commission (CIPC).
Knowing about the duration of business rescue proceedings will bring you a step closer to understanding this process.
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