Exploring the role of the business rescue practitioner in rescuing a financially distressed company
Open Access
- 13 July 2018
- journal article
- Published by Virtus Interpress in Corporate Board: role, duties and composition
- Vol. 14 (2), 20-26
- https://doi.org/10.22495/cbv14i2art2
Abstract
The emphasis on corporate sustainability as against liquidation in the South African Companies Act 71 of 2008 creates an important figure in the person of the business rescue practitioner. The practitioner in that capacity supplants the board and is insulated from the relevant elements of shareholder control in the discharge of the task of rescuing the financially distressed company. The article interrogates, through doctrinal approach, the efficacy of the statutory provisions relating to the role of the business rescue practitioner in the business rescue process and argues against the disqualification of juristic persons from appointment as business rescue practitioners. While respecting the subjective decision of the practitioner in the preparation of the rescue plan, the paper considers that such subjective decision should withstand some level of objective assessment to enjoy credibility, just as the practitioner should conform to a high level of judicial scrutiny as an officer of the court to be absolved from any liability arising from a breach of duty.Keywords
This publication has 3 references indexed in Scilit:
- Moratorium in business rescue scheme and the protection of company’s creditorsCorporate Board: role, duties and composition, 2017
- Examining the concept of de facto director in corporate governanceCorporate Board: role, duties and composition, 2016
- Transparency in corporate governance: Extent of directors duty to declare interest in company’s transactionsCorporate Board: role, duties and composition, 2015