Cape Town - Changes to the legal framework and regulation of business rescue, particularly to registration of practitioners, will take effect as from 1 October 2017.
Business rescue, which was introduced in South Africa as an alternative to insolvency, came into effect via the Companies Act in 2011.
"Although relatively successful, business rescue has received criticism resulting from apparent flaws in the appointment process and quality of business rescue practitioners. In order to assure competence and efficiency, it has been widely agreed that the regulation of business rescue practitioners is important in the preservation and integrity of the business rescue procedure," explained PJ Veldhuizen, CEO of boutique law firm Gillan and Veldhuizen.