The rights of affected persons as stakeholders during business rescue proceedings in South Africa
Authors Clement Marumoagae
Affiliations: Senior Lecturer, School of Law, University of the Witwatersrand
Source: Journal of Corporate and Commercial Law & Practice, The, Volume 4 Issue 2, 2018, p. 117 – 139
In South Africa, the Companies Act 71 of 2008 introduced the concept of business rescue, which has created a legal framework with which attempts can be made to save failing companies when there is a chance of saving them. This Act has also shifted the balance of power in the manner in which companies are managed, and has created space for various stakeholders to participate in the affairs of companies. This paper illustrates that in the 2008 Act the legislature somehow managed to limit the number of persons who can legislatively participate in business rescue proceedings as stakeholders, by specifically prescribing such stakeholders and referring to them as ‘affected persons’. This paper critically reviews the rights of these affected persons and the remedies available to them to assert their rights during the business rescue proceedings.