The regulation and competencies of business rescue practitiners in South Africa

Abstract

Chapter 6 of the Companies Act 71 of 2008 regulates business rescue in South Africa. Business rescue aims to rehabilitate financially distressed companies but it faces challenges due to gaps in the regulation and competencies of Business Rescue Practitioners (BRPs). This dissertation examines these challenges and compares South Africa’s framework with those in Zimbabwe, the UK, and Australia. This study highlights the lack of clear statutory guidelines for BRP qualifications, leading to inconsistencies and inefficiencies. It advocates for structured licensing, mandatory training, continuing professional development, and stricter oversight to ensure BRPs possess the necessary legal, financial, and managerial expertise. By proposing reforms to strengthen BRP regulation, this research aims to enhance the effectiveness of business rescue in South Africa, aligning it with international best practices to promote corporate rehabilitation and economic stability.