Business Rescue – A First, Not A Last Resort

45 out of 1000+ companies going into liquidation per month seek business rescue indicates new legislation is being overlooked.

In South Africa business rescue initiatives have worked particularly well where the directors have understood the provisions of the New Companies Act and applied for business rescue in good time. Unfortunately, in many instances business rescue has been used as an alternative to liquidation, a last resort when the company is unsalvageable. According to the latest CIPC survey, 55% of business rescues have achieved a positive result.