When it comes to starting the business rescue process, there are several ways to do it. The business rescue procedure first involves a company resolution to begin the process. The business rescue proceedings can also begin through a court order. A business rescue practitioner is present throughout both processes.

Here, we will have an in-depth look at the company resolution to start the business rescue process. We will also look at the timing of the various stages throughout. Finally, we’ll look at the business rescue practitioner role during these stages.

Company Resolution to Begin the Business Rescue Procedure

Beginning the business rescue procedure means determining whether the business is financially distressed. Beyond this, there must be a reasonable prospect for rescuing the company. Once determined to be so, the business rescue proceedings can continue.

Before appointing the business rescue practitioner, the board must come to a resolution. Specifically, a resolution to begin the business rescue process must pass. This resolution is then filed with the registrar.

Be aware that any affected person may apply to court for an order setting aside the resolution. This can occur at any time from beginning the business rescue procedure to adoption of a rescue plan. They can also apply to set aside the appointment of the business rescue practitioner. Or, requiring the practitioner to provide a means of securing the company’s interests.

Notice of Resolution to Begin the Business Rescue Proceedings

A notice of resolution for the business rescue process gets sent to all affected persons. Affected persons include shareholders, creditors, employees, and registered trade unions. The notice will include the grounds the business rescue procedure.

During this time, the appointment of the business rescue practitioner occurs. Filing of notice of practitioner appointed for the business rescue proceedings then occurs. This is after two business days.

After 5 business days, sending the notice of appointment of the practitioner to all affected parties occurs. The company should file the resolution and notify affected persons when possible. Otherwise, the resolution for the business rescue process lapses and becomes void. After this, they may not file another resolution for a period of 3 months afterwards.

Corporate Business Rescue

We are Corporate Business Rescue. As an organisation, we provide essential services to companies in financial distress. We aim to rehabilitate companies facing liquidation and closure. In other words, our goal is to set companies on a path towards financial stability. Any business rescue practitioner appointed from us is well experience and qualified.

In this endeavour, we provide several crucial services through the business rescue procedure. We navigate the business rescue proceedings in an effective manner. In so doing, we are assisting local businesses on a path to success.

For further queries, please contact us. We seek to help you and your business succeed.