Articles

Who Needs Business Rescue Insurance?

By now you would have heard the term “business rescue”.  Chapter 6 of the new Companies Act, 2008 introduced business rescue as a legal mechanism to turnaround South Africa companies in “financial distress” or trading in insolvent circumstances.   The Act sets out that this process should be opted for at the first sign of financial…

Business Rescue vs Liquidation in South Africa

Simply put, a liquidation and business rescue can be compared to a shut down versus rehabilitation. Liquidation (also known as “winding up”) is when a debtor company which owes money to a creditor is wound up.  The creditor would typically apply to court to after having demanded payment from the debtor company to no avail, to…

Don’t Be Without PI Insurance

Possibly one of the worst betrayals is when a professional individual paid to look after a client’s  interests, neglects their duty in a way that leaves the client physically, financially, emotionally  or legally compromised – or suffering a combination of all these. Professional negligence is a breach of the duty of care between a professional…

Impersonation Fraud

 Impersonation fraud is becoming the number one risk for legal practices, particularly conveyancing firms and can result in firms and their clients losing hundreds of thousands of rands. Impersonators prey on the fact that clients choose to communicate with their attorneys by email. This has many advantages as it is fast, convenient and hassle free…

Why Shackleton Top-Up Indemnity Insurance for Professionals?

WHY SHACKLETON TOP-UP INDEMNITY INSURANCE FOR PROFESSIONALS? The limit of professional indemnity cover for negligent acts, errors or omissions committed by legal practitioners offered by the AIIF is limited in its amount annual and scope. The limit is determined by the number of directors of the firm meaning the smallest amount of cover is offered…

The appointment of a Tutor, when and how?

A tutor may be appointed over the estate of a minor where necessary. A child or minor is defined in the Children’s Act as meaning a person under the age of 18 years. The general rule is that minors are under disability in that the law does not regard them as capable of managing their…

Punitive Costs Orders for Executors

Punitive costs orders for executors who fail to lodge accounts or perform their duties The Administration of Estates Act, 1965 (“the Act”) provides that if an executor fails to lodge any account with the Master as and when required to by the Act or to lodge any voucher or vouchers in support of such account…

Business Rescue: How do I apply for a license as a Business Rescue Practitioner?

A person may be appointed as a business rescue practitioner of a company only if he or she is a member in good standing of a legal, accounting or business management profession. A conditional license as a practioner  may be issued to a person who has been nominated by a company that is financially distressed.…

Curator Bonds of Security | Document Guide

A guide on what documents I need to lodge bonds of security with the Master of the High Court in Curator matters CURATOR BONIS IN RESPECT OF PERSONS INCAPABLE OF MANAGING THEIR OWN AFFAIRS: 1) Notice of Motion, affidavit and annexures 2) Consent to act as curator-ad-litem (if applicable) 3) Certified copy of Court Order…

Trustee Bonds of Security | FAQS

Do all trustees require trustee bonds of security? No, if trustees are exempt from furnishing security in the trust deed, they will not be required to source a bond through a bond provider. What happens if a trustee named in the Letters of Authority resigns or dies – does this affect the security bond? On…

Employees of Trustee’s not entitled to fees from of an insolvent estate

Employees of Trustees and Insolvent Estates: No employee of a trustee is entitled to remuneration out of an insolvent estate for services rendered by him to the estate. Nor shall a partner of a trustee be entitled to any remuneration out of the estate for services he may have rendered to the estate.  Only the…

What is Business Rescue?

Business rescue, as defined by the Companies Act 2008, aims to facilitate the rehabilitation of a company that is “financially distressed” by providing for 1. the temporary supervision of the company and management of its affairs, business and property by a business rescue practitioner, and 2. a temporary moratorium (“stay”) on activities carried out by…