LML4806
Assignment 2 Semester 1 2024
Unique Number:590092
Due Date: 15 April 2024
QUESTION 1
Business rescue refers to proceedings aimed at rehabilitating a financially distressed
company. According to Section 128(1)(b) of the Companies Act 71 of 2008, a company
is considered as financially distressed if it appears to be reasonably unlikely that the
company will be able to pay all of its debts as they become due and payable within the
immediately ensuing six months or if it appears to be reasonably likely that the company
will become insolvent within the immediately ensuing six months. The aim of business
rescue is to allow the company to continue its operations in a manner which maximizes
the likelihood of the company being rescued. In terms of Section 129 of the Companies
Act, business rescue proceedings may be commenced when the Board of Directors
resolves that the company voluntarily begin business rescue proceedings and such
resolution
DISCLAIMER & TERMShas
OFbeen
USE filed with the Companies and Intellectual Property Commission
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