For the benefit of those that still question the observation that the economy is not in the best of shape, for want of a better term: at worst, businesses are closing, or, at best, battling to get along.
Trade and industry Minister, Rob Davies, revealed at a company law symposium in Johannesburg that 1 000 businesses needed to be rescued to avoid liquidation. “There are 1 121 valid rescue processes in that have already started, with only 73 resulting in liquidation,” he said, stressing that there were more remedies than liquidation.
There have been doubts on the efficiency of the business rescue procedure that are undertaken, as they have only hastened not averted the collapse of businesses. in 2011, the dti had said that it was reviewing the act governing the rescue of businesses.
The symposium focused on the Companies Act, business rescue processes, and takeovers and mergers.