Theses and Dissertations
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Browsing Theses and Dissertations by Subject "Business rescue"
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Item Open Access A critical appraisal of the creditor protective mechanisms under the South African Companies Act 71 of 2008(2019-05-18) Sibanda, Mandlaenkosi; Nwafor, A. O.; Letuka, P.This research examined the mechanisms that were employed by the Companies Act 71 of 2008 in order to protect the interests of creditors in company affairs. At the preamble of the aforementioned Act lies an undertaking from legislature to provide appropriate redress to investors and third parties/creditors. It was on that basis that the researcher sought to establish whether legislature had indeed fulfilled its commitment to provide appropriate redress to creditors. Traditionally, companies have been run to promote the interests of shareholders with little attention given to the interests of other stakeholders such as creditors. It is this research`s findings that South African company law has moved from the traditional view, that is the shareholder value approach, to the enlightened shareholder value approach: a model of corporate governance which permits directors to have regard, where appropriate, to the interests of other stakeholders but with shareholders’ interests retaining primacy. It is thus found that creditors cannot be protected by contract laws alone but that their protection should be enhanced by mandatory corporate laws which regulates the manner and conduct of company controllers in a way that ensures that the interests of all stakeholders, including creditors, are given due regard. Finally, it has been found that much work has been done by legislature in developing the re-enacted creditor protective mechanisms and also in statutorily adopting new mechanisms which are aimed at advancing creditor interests. Recommendations have thus been made to legislature for possible amendments to refine its corporate laws.Item Open Access Exploring the novel concept of business rescue under the South African Companies Act 71 of 2008(2018-05-18) Mpofu, Kudzai; Nwafor, A.; Selala, K. J.Business rescue provisions are meant to assist a financially distressed company. It seems that the success of business rescue rests on three factors, namely a competent business rescue practitioner and a practicable business rescue plan; the consent and cooperation of shareholders and creditors. However, academics and case law point out concerns as to the regulation of the aforementioned essential ingredients. The purpose of this study is to ascertain the level of the efficacy of the Companies Act provisions on business rescue as contained in Chapter 6. The researcher compares the current business rescue regime and the previous judicial management procedure to find out how the current regime can be improved. Since the business rescue regime was adopted from other jurisdictions the researcher also compares the practices in some of those jurisdictions with that of South Africa to establish the goals and expectations of business rescue in modern corporate operations.