Business Rescue Overview
Structure and background of the Business Rescue Presenter unit, including the automation of applications, processing of status reports, and duties of practitioners in business rescue proceedings.
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Presentation Transcript
19 September 2024 BUSINESS RESCUE PRESENTER: MAPULE MALINDA
STRUCTURE OF THE BUSINESS UNIT BRP is the section within the Directors, Members and Practitioners Business Unit, also known as DMP. It is responsible for the facilitation of Accrediting of Professional Bodies, notices for Practitioners Licensing, Proceedings, Appointments and Termination/Substantial Implementations. Further record the status reports for proceedings that have not ended within the prescribed 3 months period; and Monitor the conduct of the business rescue practitioners Strictly confidential | 2
TABLE OF CONTENTS Background and system developments Status Reports Terminations and Substantial Implementation (R125(4)& (5)) Strictly confidential | 3
BACKGROUND When the CIPC was established, all applications were processed manually. However, as part of the commission s strategic planning, the commission automated some applications including some business rescues processes. This was a phased approach which started with business rescue proceedings, license and appointment applications. Recently we have launched the submission of status reports, terminations and substantial-implementations. The next process after this will be receiving of complaints so that we may have a proper case management system. Strictly confidential | 4
BUSINESS RESCUE STATUS REPORTS Strictly confidential | 5
STATUS REPORTS Section 132(3) Duration of business rescue proceedings If a company s business rescue proceedings have not ended within three months after the start of those proceedings, or such longer time as the court, on application by practitioner, may allow the practitioner must - a) Prepare a report on progress of the business rescue proceedings, and update it at the end of each subsequent month until the end of those proceedings; and b) deliver the report and each update in the prescribed manner to each affected person, and to the (i) court, if the proceedings have been the subject of a court order; or (ii) Commission, in any other case Strictly confidential | 6
DUTIES OF PRACTITIONERS Regulations 125(1) Notice to be issued by practitioner concerning business rescue proceedings. A business rescue practitioner who is required by section 132(3)(b) to report to affected persons on the progress of the business rescue proceedings, or required by section 141(2)(b) to inform the court, the company and affected persons as to the prospects for rescue of the company must prepare and file a Notice Concerning the Status of Business Rescue Proceedings in Form CoR125.1, deliver a copy of that Notice to the court and to the company, and must either a) deliver a copy of that notice to each affected person in accordance with regulation 7; or b) inform each affected person of the availability of a copy of that notice, in the manner contemplated in section 6(11)(b)(ii) and regulation 6. Strictly confidential | 7
REQUIREMENTS Login on New E-services; Must be a registered client with CIPC Must be the active practitioner for the entity you filing for (provide a mandate for the person filing on behalf of the practitioner) The information to be completed in full Document to be uploaded are as followed; CoR125.1 must be signed by an active practitioner or provide a mandate for the person signing on behalf of the practitioner. Status reports Strictly confidential | 8
BUSINESS RESCUE TERMINATION / SUBSTANTIAL IMPLEMENTATIONS Strictly confidential | 9
TERMINATIONS/SUB-IMPLEMENTATION According to section 141(2)(a) - (b)(ii) of Companies Act 71 of 2008; a) Business rescue practitioners can file a notice of termination of business rescue at any time during business rescue proceedings, if they conclude that there is no reasonable prospect for the company to be rescued apply to court for an order discontinuing the proceedings and placing the company into liquidation; or b) there no longer are reasonable grounds to believe that the company is financially destressed. Strictly confidential | 10
REQUIREMENTS Login on our New E-services; Must be a registered client with CIPC Must be the active practitioner for the entity you filing for (provide a mandate for the person filing on behalf of the practitioner) The information to be completed in full Document to be uploaded are as followed; CoR125.2/CoR125.3 must be signed by an active practitioner or provide a mandate for the person signing on behalf of the practitioner. The COR125.2 should be accompanied by Court order and grounds for termination. The COR125.3 should be accompanied by the PI Score breakdown at the end of the proceedings. Strictly confidential | 11
ANY QUESTIONS ??????????? Strictly confidential | 12
