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Summary: SARS v Mark Beginsel NO and Others

Oct 22, 2018

On 31 October 2012 an important decision on the ranking of creditors’ votes on a business rescue plan was handed down in the Western Cape High Court. This was in the matter of Commissioner: Sars v Mark Beginsel NO and Others. In terms of Section 99 of the Insolvency Act, No 24 of 1936 ("the Insolvency Act"), SARS is regarded as a preferred creditor in the winding up process. The issue before

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Issuing the authorised but unissued shares to an investor

Oct 22, 2018

In most instances a company in business rescue will require post commencement financing. A potential investor or post commencement financier may come along with an offer to invest in the company and in return, subscribing for all the authorised but unissued ordinary shares in the company. The question arises as to whether the business rescue practitioner: has the power to issue the authorise

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Summary of Relevant Provisions of Chapter 6 : Business Rescue

Oct 22, 2018

  S 129 and 130 Company resolution to begin BRP: If a company is financially distressed and there appears to be a reasonable prospect of rescuing the company, the board may pass a resolution to voluntarily begin BRP and appoint a practitioner. Notice of such a resolution and appointment must be sent to all affected persons. After the adoption of such a resolution, but before the adop

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