Chapter 1

Question 1

S1 Section 128(1)(b).

Question 2

s2 Section 128(1)(b)(ii).

Question 3

Section 129.

Question 4

Section 131.

Answer 4

[January 2025]

Question 5

Objecting or opposing a voluntary business rescue resolution:

Question 6

Section 130 provides that at any time after the adoption of a business rescue resolution, an affected persons may apply to court for an order setting aside the resolution on the grounds that:

Question 7

A director of a company that votes in favour of a resolution may not apply to court to set aside the resolution or the appointment of the business rescue practitioner unless such person can satisfy the court that he acted in good faith on the basis of information that has since been found to be false or misleading.

Question 8

General moratorium on legal proceedings against company.

Question 9

During business rescue proceedings, no legal proceeding, including enforcement action, against the company, or in relation to any property belonging to the company, or lawfully in its possession, may be commenced or proceeded with in any forum, except:

Question 10

there is no reasonable basis for believing that the company is financially distressed;

Question 11

there is no reasonable prospect for rescuing the company; or

Question 12

the company has failed to satisfy the procedural requirements in section 129; setting aside the appointment of the practitioner on the grounds that the practitioner (i) does not satisfy the requirements of section 138; (ii) is not independent of the company or its management; or (ii) lacks the necessary skills, having regard to the company’s circumstances; or requiring the practitioner to provide security.

Question 13

affected person

Answer 13

in relation to a company, means- a) with the written consent of the practitioner; b) with the leave of the court and in accordance with any terms the court considers suitable: (ii) any registered trade union representing employees of the company; and (ii) if any of the employees of the company are not represented by a registered trade union, each of those employees or their respective representatives;

Question 14

as a set-off against any claim made by the company in any legal proceedings, irrespective of whether those proceedings commenced before or after the business rescue proceedings began;

Question 15

criminal proceedings against the company or any of its directors or officers;

Question 16

proceedings concerning any property or right over which the company exercises the powers of a trustee: or

Question 17

proceedings by a regulatory authority in the execution of its duties after written notification to the business rescue practitioner.