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Being resilient in these tough economic times is a necessity… practical steps for directors to consider in extra-ordinary times of financial distress!
by Dr. Eric Levenstein, Director and Head of the Business Rescue, Restructuring and Insolvency practice; Nastascha Harduth, Director; and Roxanne Webster, Senior Associate Prior to the [...]
When Insolvency meets the Environment: Directors and liquidators should develop a corporate green thumb
By Nastascha Harduth, Director. Bronwyn Parker, Senior Associate and Tsebo Masia, Candidate Attorney Introduction Corporate South Africa has long been aware of the influence that environmental [...]
Rising above the flames – answers to directors’ burning questions during times of financial crisis
By Eric Levenstein, Director and Nastascha Harduth, Director Often directors of companies that face financial difficulties have questions which they are too reluctant or embarrassed to [...]
Cutting edge issues for south african boards of directors facing financial distress in 2019
INTRODUCTION Over the years, South African directors have, from time to time been faced with claims of malfeasance, reckless trading, fraud and negligent behaviour, all of [...]
Are landlords and property owners better off with the proposed Amendment to Chapter 6?
The anticipated amendments to the Companies Act 71 of 2008 have proposed one change to Chapter 6 of the 2008 Act. It is somewhat surprising that [...]
Reporting obligations of directors in terms of the Companies Act, No. 71 of 2008 – reckless trading and personal liability
Directors are obligated to report financial distress – failure to do so might result in personal liability. The Companies Act No. 71 of 2008 (the Act) [...]
South Africa: A South African Perspective on Restructuring Mechanisms
Director, Eric Levenstein and Senior Associate, Lara von Wildenrath contribute to The European, Middle Eastern and African Restructuring Review 2018.This Review provides exclusive thought leadership, direct [...]
Can directors of state-owned companies be held to account by the SA public?
South African President Ramaphosa admitted in his state of the nation address that state-owned enterprises “are experiencing severe financial operation and governance challenges”. He continued to [...]
INSOL International: Restructuring Options for MSMEs and Proposals for Reform – South Africa
Directors, Nastascha Harduth and Dr. Eric Levenstein contribute on the Special Report on MSME insolvency, giving a holistic South African view. 1. Is there a legal [...]
FAQ – opportunities for investors arising from the South African business rescue process
INTRODUCTION The South African business rescue process has created the opportunity for investors (local and foreign) to position themselves in order to take advantage of distressed [...]
Informal restructuring or business rescue
Business rescue proceedings are formal legislated proceedings, under Chapter 6 of the South African Companies Act 71 of 2008 ("The Companies Act"), that are aimed at [...]
Coal for Christmas – Diener N.O. v Minister of Justice and others
It is that magical time of the year where images are abound of Christmas trees, fairy lights, delicious pudding, family gatherings and all things warm and [...]
Director, Nastascha Harduth, becomes the first female fellow of INSOL international in SA
The on-going global financial crisis, recent confirmation by STATSSA that South Africa is in a technical recession and the globalization of business will result in South [...]
Company directorship-declaring directors delinquent when trading a company in insolvent circumstances
In these turbulent economic times, and particularly with overt pressure on the Rand and with the recent downgrade of South Africa to "junk status", directors of [...]
Top ten risks for creditors of companies going into Business Rescue in 2017
Continued pressure on business and world economies appears to continue into 2017. In South Africa, 2016 has seen several companies going out of business and with [...]
South Africa’s Business Rescue regime – firing on all cylinders?
The downturn in world economies has placed business under severe pressure in the last few years. In South Africa, the knock-on effect has been felt, with [...]
QUO VADIS – business rescue or liquidation?
Going under business rescue is proving to be an increasingly attractive option for South African companies that are in financial distress since the advent of Chapter [...]
Time to amend the Business Rescue Act?
Business rescue was introduced into our law in May 2011. But is it time for an overhaul? The business rescue legislation has been in place for [...]
The impact of Mitchell judgement on purchases of immovable property from an insolvent estate
In a recent judgement, of City Tshwane Metropolitan Municipality v PJ Mitchell (38/2015) (2015) ZASCA, the Supreme Court of Appeal ruled that a hypothec created by section 118(3) [...]
The duty to disclose business rescue proceedings
On 14 April 2016, the Supreme Court of Appeal (“SCA”) in the matter of Umso Construction Proprietary Limited (“Umso”) v MEC for Roads and Public Works Eastern [...]
Spotlight on boards and shareholder activism
INTRODUCTION Corporate activism places public pressure on boards to improve both financial and non-financial performance of companies. Non-financial performance would include corporate governance, ethics, executive [...]
The delinquent director: No tolerance for errant directors
Errant company directors who fail to comply with the obligations set out in the Companies Act, 2008, will now face the prospect of being declared “delinquent” [...]
