Sometimes called a foreign phenomenon, business rescue comprises proceedings to facilitate the rehabilitation of a company that is financially distressed by providing interalia temporary supervision of the company and the management of its affairs. In the well known matter of SARS v Beginsel NO and others, the court ruled that the Revenue Service could not be classified in business rescue the same way it is classified in liquidation proceedings. SARS was accordingly demoted to the role of a concurrent creditor and was suddenly in unfamiliar waters. This has the effect that SARS now ought to play a much more active role in the business rescue proceedings.
The question, however, is what role must SARS play and what should the relevant considerations and yardsticks be when it decides whether to vote for or against a proposed business rescue plan?
Click here to download the full article by Okkie Blom (Director) and William Maodi (Candidate Attorney)