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Companies Act, 2008 (Act No. 71 of 2008)

Chapter 6 : Business Rescue and Compromise with Creditors

Part A : Business rescue proceedings

132. Duration of business rescue proceedings

 

 

1) Business rescue proceedings begin when—
a) the company
i) files a resolution to place itself under supervision in terms of section 129(3); or
ii) applies to the court for consent to file a resolution in terms of section 129(5)(b);
b) an affected person applies to the court for an order placing the company under supervision in terms of section 131(1); or
c) a court makes an order placing a company under supervision during the course of liquidation proceedings, or proceedings to enforce a security interest, as contemplated in section 131(7).

 

2) Business rescue proceedings end when—
a) the court—
i) sets aside the resolution or order that began those proceedings; or
ii) has converted the proceedings to liquidation proceedings;
b) the practitioner has filed with the Commission a notice of the termination of business rescue proceedings; or
c) a business rescue plan has been—
i) proposed and rejected in terms of Part D of this Chapter, and no affected person has acted to extend the proceedings in any manner contemplated in section 153; or
ii) adopted in terms of Part D of this Chapter, and the practitioner has subsequently filed a notice of substantial implementation of that plan.

 

3) 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 the practitioner, may allow, the practitioner must—
a) prepare a report on the 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.