| Action | By Whom | Further information | ||
|---|---|---|---|---|
| 1 | Cash flow issues become critical; agitated creditors demand immediate action | Creditors | “Don’t leave it too late!” | |
| 2 | Unsure of solution / look for help | Shareholders/management | Rescue your business in three months | |
| 3 | Decide on Business Rescue and contact / file notice with CIPC | Shareholders/management / secretarial advisor/ accountant / auditor | www.cipc.co.za/index.php/manage…business/…/business-rescue/ | |
| 4 | Debt moratorium commences | N/A | Section 133 of Chapter 6 of Companies Act | |
| 5 | Appoint Business Rescue Practitioner and advise affected persons | Company/ secretarial advisor/ accountant / auditor | ||
| 6 | Provide Practitioner with all info | Management | ||
| 7 | Assume control of Company and investigate matters | Practitioner | Section 140(1)(a) of Chapter 6 of Companies Act | |
| 8 | Meet creditors and employees | Practitioner | ||
| 9 | Develop and publish Business Rescue Plan for approval by creditors (and Shareholders if applicable) | Practitioner | ||
| 10 | Approval of Business Rescue Plan | Creditors (and Shareholders if applicable) | ||
| 11 | Implement Business Rescue Plan | Practitioner | ||
| 12 | If Business Rescue Plan not approved – liquidation follows | Practitioner / Liquidator | ||