The Companies and Intellectual Property Commission (CIPC) has, on 28 June 2017, accredited the South African Institute of Chartered Accountants (SAICA) as a professional body for business rescue practitioners in terms of Section 138(1) of the Companies Act, 2008.
Business rescue, as defined by the Companies Act 2008, aims to facilitate the rehabilitation of a company that is “financially distressed” by providing for: the temporary supervision of the company and management of its affairs, business and property by a business rescue practitioner, a temporary moratorium (“stay”) on the rights of claimants against the company or in respect of property in its possession and the development and implementation (if approved) of a business rescue plan to rescue the company by restructuring its business, property, debt, affairs, other liabilities and equity.
Business rescue was included in the South African legal framework by the Companies Act as an alternative to judicial management with effect from 1 May 2011.
Changes to regulation of business rescue practitioners, particularly to the registration of practitioners, will take effect as from 1 October 2017.
Currently business rescue practitioners apply directly to the CIPC for an individual license to practice as a business rescue practitioner. In future professional bodies will be accredited and in turn their members will then be licensed by the CIPC. No person will be licensed if they are not a member in good standing of a professional body accredited by the CIPC. SAICA members can continue their career as business rescue practitioners with SAICA as their accredited professional body.
Other accredited professional bodies include the South African Institute of Professional Accountants and the Institute of Accounting and Commerce.
Juanita Steenekamp | Project Director: Governance and Non-IFRS reporting | SAICA Standards Division | juanitas@saica.co.za | www.saica.co.za |