South Africa: Insolvency/Bankruptcy

Business Rescue Practitioners in South Africa wield significant powers over distressed companies, but when does their conduct cross the line into personal liability? Explore the legal boundaries between commercial judgment and gross negligence, and discover how recent case law protects practitioners acting in good faith while holding accountable those who act recklessly or fraudulently.

Litigation can sometimes feel like a long-running stage production. Pleadings are exchanged, attorneys correspond, dates are diarised, costs are incurred and everyone continues playing their part.

There is a certain relief in reaching a settlement. The dispute is resolved, terms are agreed and payment is on the horizon.

In a recent judgment delivered by the Johannesburg High Court, the Prudential Authority ("the Authority") instituted provisional sequestration proceedings in terms of sections 83(3)(b)...

A long dispute between a father and son, which progressed through various courts, culminated in an application focusing on the court's powers under section 387(3) of the old Companies Act.

The Supreme Court of Appeal recently considered the matter of Botha NO and Others v Jonker and Others (1003 / 2022) [2024] ZASCA 78.

In this FAQ summary we answer questions from South African business owners and leaders who are potentially facing financial distress, insolvency or restructuring.

It is imperative that companies in financial distress prioritise their continued existence and consider business rescue as an alternative to liquidation.

When banks advance funds to clients prior to the lodgement of a mortgage bond at the Deeds Office, they must take cognisance of the effect of Section 88 of the Insolvency Act.