[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_fullwidth_image src=”https:\/\/www.oaklaw.co.za\/wp-content\/uploads\/2025\/02\/Mergers-Acquisitions.jpg” title_text=”Mergers & Acquisitions” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_fullwidth_image][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.19.1″ _module_preset=”default” custom_padding=”20px||1px|||” global_colors_info=”{}”][et_pb_row _builder_version=”4.19.1″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” header_font=”|600|||||||” header_text_align=”left” custom_margin=”||11px|||” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
[\/et_pb_text][et_pb_divider color=”#7CDA24″ divider_weight=”2px” _builder_version=”4.19.1″ _module_preset=”default” width=”23%” module_alignment=”left” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ custom_padding=”2px|||||” global_colors_info=”{}”][et_pb_row column_structure=”3_5,2_5″ admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”3_5″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.27.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
Your company’s financial difficulties do not have to end in liquidation. Whether you are a director facing mounting creditor pressure, a shareholder concerned about mismanagement, or a creditor seeking to recover what you are owed \u2014 OAK Law provides clear, commercially focused legal guidance when the stakes are highest.<\/p>\n
Our commercial litigation<\/a> team advises on the full range of corporate business rescue and insolvency matters in South Africa, under Chapter 6 of the Companies Act 71 of 2008 and the Insolvency Act 24 of 1936.<\/p>\n Speak to our team \u2192<\/a><\/strong><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n When a company is financially distressed but has a reasonable prospect of recovery, business rescue proceedings provide a structured alternative to liquidation. OAK Law assists with:<\/p>\n Get advice on business rescue \u2192<\/a><\/strong><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n The business rescue procedure follows a defined sequence under the Companies Act:<\/p>\n OAK Law guides directors, shareholders and creditors through each stage of this process, ensuring their rights are protected and their commercial interests are advanced.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n When company liquidation becomes the appropriate course of action in South Africa \u2014 either because business rescue is not viable or because the company is hopelessly insolvent \u2014 an orderly winding-up protects all parties. We advise on:<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n Directors face personal liability if they continue trading recklessly while their company is insolvent. OAK Law advises directors on:<\/p>\n Concerned about director liability? Talk to us \u2192<\/a><\/strong><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n If you are owed money by a financially distressed or insolvent company, acting early is critical. OAK Law represents creditors in:<\/p>\n Protect your creditor rights \u2192<\/a><\/strong><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n OAK Law’s commercial litigation team combines legal expertise with practical business insight. We understand that business rescue and insolvency matters involve far more than legal process \u2014 they affect livelihoods, business relationships and long-term commercial viability.<\/p>\n We work with directors, shareholders and creditors across Pretoria and South Africa, providing advice that is direct, commercially realistic and focused on achieving the best available outcome.<\/p>\n Our broader corporate structuring<\/a> and commercial agreements<\/a> expertise means we understand the corporate and contractual landscape that surrounds financial distress \u2014 giving our clients an integrated, strategic perspective.<\/p>\n [\/et_pb_text][et_pb_button button_url=”\/contact\/” url_new_window=”on” button_text=”Schedule Your Consultation Today” _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||7px|||” locked=”off” global_colors_info=”{}”][\/et_pb_button][et_pb_accordion _builder_version=”4.27.6″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″][et_pb_accordion_item title=”What is business rescue?” _builder_version=”4.27.6″ _module_preset=”default” open=”on” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n Business rescue is a formal process under Chapter 6 of the Companies Act 71 of 2008 designed to rehabilitate financially distressed companies in South Africa. It places the company under the temporary supervision of a business rescue practitioner, imposes a moratorium on creditor claims, and facilitates the development of a rescue plan \u2014 with the aim of restoring the company to solvency or delivering a better outcome than immediate liquidation.<\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”What is the difference between business rescue and liquidation?” _builder_version=”4.27.6″ _module_preset=”default” open=”off” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n Business rescue aims to rehabilitate a financially distressed company so it can continue operating or deliver a better return than liquidation. Company liquidation is the process of winding up a company’s affairs and distributing its assets to creditors. Business rescue is a recovery mechanism; liquidation is final.<\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”Who can apply for business rescue?” _builder_version=”4.27.6″ _module_preset=”default” open=”off” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n The company’s board can initiate business rescue voluntarily. Any affected person \u2014 including creditors, shareholders, trade unions or employees \u2014 can apply to court for a compulsory business rescue order.<\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”How does business rescue work in South Africa?” _builder_version=”4.27.6″ _module_preset=”default” open=”off” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n The business rescue process begins with either a board resolution or court order. A business rescue practitioner is appointed to take temporary control of the company, a moratorium suspends legal action against it, and the practitioner develops a business rescue plan. Creditors and other affected persons then vote on the plan. If adopted, the plan is binding on all parties.<\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”Can business rescue be initiated after liquidation proceedings have started?” _builder_version=”4.27.6″ _module_preset=”default” open=”off” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n If a final liquidation order has not yet been granted, an affected person may apply to court under section 131 of the Companies Act to place the company under business rescue. A voluntary resolution is not available once liquidation proceedings have commenced.<\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”What happens when a company goes into business rescue?” _builder_version=”4.27.6″ _module_preset=”default” open=”off” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n The company’s management is placed under the supervision of a business rescue practitioner. A moratorium prevents creditors from taking legal or enforcement action against the company. The practitioner investigates the company’s affairs and develops a plan to restructure its debts and operations. Employees’ contracts remain in force throughout the process.<\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”Can directors be held personally liable?” _builder_version=”4.27.6″ _module_preset=”default” open=”off” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n Yes. Directors who allow reckless trading while the company is insolvent, or who dispose of assets to defeat creditor claims, face personal liability under the Companies Act.<\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”What does business rescue mean for employees?” _builder_version=”4.27.6″ _module_preset=”default” open=”off” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n Employment contracts remain in force during business rescue. Retrenchments must comply with section 189 of the Labour Relations Act. Employees are classified as affected persons and are entitled to participate in the business rescue process, including voting on the rescue plan.<\/p>\n [\/et_pb_accordion_item][\/et_pb_accordion][\/et_pb_column][et_pb_column type=”2_5″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.19.1″ _module_preset=”default” header_3_font=”|700|||||||” header_3_text_color=”#FFFFFF” background_color=”#7DB560″ custom_margin=”||16px|||” custom_padding=”8px|||15px|false|false” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_code _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}”]Business Rescue Proceedings<\/h2>\n
\n
How the Business Rescue Process Works<\/h2>\n
\n
Company Liquidation & Winding-Up<\/h2>\n
\n
Director Liability & Compliance<\/h2>\n
\n
Creditor Rights & Recovery<\/h2>\n
\n
Why OAK Law<\/h2>\n
Contact Us<\/h3>\n