oa De Jure - When does an application for business rescue proceedings suspend liquidation proceedings? : notes
Section 131 of the Companies Act 71 of 2008 (the "Act") regulates the commencement of business rescue proceedings by an order of court. In terms of section 131(1) an affected person may apply to court at any time for an order placing a company under supervision and commencing business rescue. "Affected person" is defined in section 128 as a shareholder or creditor of the company, a registered trade union representing employees of the company or the representatives of employees not affiliated to a trade union. It may happen that affected persons would wish to approach the court with an application to commence business rescue proceedings after liquidation proceedings had already commenced. The Act makes provision for this circumstance in section 131, which states amongst other things that such an application, if brought, would have the effect of suspending the liquidation proceedings.
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