Original Research

Stakeholder expectations of the Business Rescue Plan from a South African perspective

Wesley Rosslyn-Smith, Marius Pretorius
The Southern African Journal of Entrepreneurship and Small Business Management | Vol 7, No 1 | a4 | DOI: https://doi.org/10.4102/sajesbm.v7i1.4 | © 2015 The Southern African Journal of Entrepreneurship and Small Business Management
Submitted: 23 June 2015 | Published: 23 June 2015

About the author(s)

Wesley Rosslyn-Smith, University of Pretoria
Marius Pretorius, University of Pretoria

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Abstract

Background: A business rescue plan has to comply with a new and vague set of obligations regulated by South African legislation. Expectations of the plan are largely unknown, yet crucial in determining compliance. Establishing an effective benchmark for the plan is essential for the growth and success of the industry.

Purpose: The study set out to answer these questions: What are the most crucial elements needed to fill the gap between the specifics of the Companies Act (2008) and the further elements needed to meet the plan’s primary objective of providing adequate information to stakeholders? What are the international principles applicable to rehabilitation plans and what elements underpin them?

Method: Thirteen industry experts were selected and interviewed to identify the most crucial elements of the business rescue plan. Sampling was a combination of convenience and purposive sampling. Data collection obtained data on subjects’ opinions, rankings, agreement and ratings.

Results: The study was able to confirm that there is indeed a gap between the mandatory elements prescribed in section 150(2) and the provision of sufficient information required by section 150(1) of the Companies Act No. 71 of 2008. The survey revealed that in the subjects’ expert opinion, the international principles are applicable to the business rescue plan.

Conclusion: The crucial elements of the rehabilitation plan selected by the experts offer insight and clarity in terms of what is expected of the plan.

 

Key words: Business Rescue, Companies Act, Business Plans, Measurement, Insolvency, Turnaround, Reorganisation


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Crossref Citations

1. Exploring entrepreneurial learning during formal business rescue processes: Insights from the South African experience
Anéa Burke-le Roux, Marius Pretorius
SA Journal of Human Resource Management  vol: 15  year: 2017  
doi: 10.4102/sajhrm.v15i0.733