C&A Friedlander Attorneys

When the liquidator comes knocking

Here is the scenario, you render services for company X, company X receives the service and makes payment. Happy days, the business has some money in the bank and now you can move on to the next job. A few months go by and you receive an email which advises you that company X was […]

Is business rescue a remedy for companies struggling due to COVID 19?

“The rescue of a business preserves jobs, provides creditors with a greater return based on higher going concern values of the enterprise, potentially produces a return for owners and obtains for the country the fruits of the rehabilitated enterprise” – The World Bank The COVID-19 pandemic has had a devastating impact on the economy and […]

The Aftermath: Resignation of a director and the surviving fiduciary duties

A fiduciary duty is an obligation to act in the best interest of another party. For example, a company’s board member has a fiduciary duty to the company’s shareholders, a trustee has a fiduciary duty to the trust’s beneficiaries, and an attorney has a fiduciary duty to a client.  Sections 75 and 76 of the Companies Act 71 of 2008 refer to the various fiduciary duties which are applicable to […]

The National Credit Amendment Bill proposes alternative relief to sequestration for persons who are insolvent

The National Credit Amendment Bill (the Bill) is set to become law after President Ramaphosa signed the Bill into our legislation in August 2019. The Bill reiterates the purpose of the National Credit Act namely, to promote and advance the social and economic welfare of South Africans; to promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market industry; and to protect low-income South Africans.   The Bill came about due to categories of consumers who do […]

What is business rescue?

What is business rescue? Business Rescue was introduced to South Africa through the Companies Act in 2008. It was aimed at finding a solution for companies in financial distress, returning them as a stable and profitable entity. The programme allows a shift in focus from protecting the creditors of a company to protecting the company […]

Business Rescue proceedings? Surely, I’m covered with a surety!

Business Rescue proceedings? Surely, I’m covered with a surety! You have rendered efficient services to a company (“the company”) and now it’s time to send an invoice for your services. The invoice gets sent, but you hear nothing. You send follow-up e-mails and call the company to no end, all to no avail.  You even […]

When not to institute Liquidation proceedings when a debt is due…

Liquidation proceedings are usually, and should as rule be, instituted when a debtor company is unable to pay its debts as they become due. However, liquidation proceedings should be carefully considered, as opposed to action proceeding (Summons), for the collection of a debt. The law differentiates between two types of insolvency, namely factual and commercial […]

Piercing the corporate veil: when directors can be held responsible for losses

One of the oldest and most well-established principles of South African corporate law, and throughout the world, is that of separate juristic personality. In essence, the concept of separate juristic personality means that when a corporate entity (more commonly referred in the legal fraternity to as a juristic person) such as a company or a […]

Business rescue – in a nutshell

Business rescue proceedings are defined by the Companies Act 71 of 2008 as proceedings to facilitate the rehabilitation of a company that is financially distressed, i.e. a company which is unlikely to pay its debt as it becomes due within the immediate ensuing six months, or a company that is likely to become insolvent within […]


The sequestration process involves a Court Application. The Applicant will be either yourself, in the event of voluntary surrender, or one of your creditors (either a friendly or aggressive creditor). The applications are similar and have the same result, however there are different requirements for each. Voluntary surrender Voluntary surrender refers to the process whereby a […]