When does Business Recue end?

The Companies Act

In considering the first issue, the court considered section 132(2) of the Companies Act which regulates the duration of business rescue proceedings and determines how business rescue proceedings terminate. Section 132(2) provides as follows:

“132. Duration of business rescue proceedings

(2) Business rescue proceedings end when:

1 a) the court:

2) sets aside the resolution or order that began those proceedings; or

3) has converted the proceedings to liquidation proceedings;

4 b) the practitioner has filed with the Commission a notice of the termination of the business rescue proceedings;

5 c) a business rescue plan has been-

6) proposed and rejected in terms of Part D of this Chapter, and no affected person has acted to extend the proceedings in any manner contemplated in section 153; or

7) adopted in terms of Part D of this Chapter, and the practitioner has subsequently filed a notice of substantial implementation of the plan.”