Business
Funding & grants for black business
Small and micro business sectors are the main source of real employment in the economy.

Funding for Black Entrepreneurs from Government Grants & Funds
By Entrepreneur
How do you raise funding? A small business can on average employ 12 people. The drop in entrepreneurial activity over the past five years is equal to 2.3 million possible job opportunities lost. Small and micro business sectors are the main source of real employment in the economy.
South Africa’s economy needs to inspire entrepreneurship in order for it to grow. By creating an environment that is friendlier to small businesses and actively encouraging the sector, the country is in a better position to create jobs.
Two simple measures that would go a long way to support and develop entrepreneurs is access to finance and improvement of logistics.
Content in this guide
- National Empowerment Fund (NEF)
- Industrial Development Corporation (IDC) Funding
- Small Enterprise Finance Agency (SEFA)
- The Isivande Women’s Fund (IWF)
- Khula SME Fund
- Black Business Supplier Development Programme (BBSDP)
- Incubation Support Programme (ISP)
- National Youth Development Agency (NYDA)
- PDF Download
Government Funds
The government created government funding to extend finances to previously disadvantaged South African’s in order to develop black economic development. Your much needed capital investment could come from government funding opportunities.
Financing a small business, whether you’re starting-up or trying to expand, is a challenge all entrepreneurs go through. Here are a few examples of government funding that focuses on black entrepreneurs:
1 National Empowerment Fund (NEF)
The NEF is, a part of the government’s development mandate to encourage black participation in business and entrepreneurship. It helps to assist black entrepreneurs in achieving funding. This fund aims to assist black youth, women and men, communities and businesses to achieve sustainable success.
Types of NEF Funding
The NEF has four main channels of funding that consist of subdivisions. These are:
1. iMbewu Fund:
- This consists of subdivision is entrepreneur finance, procurement finance and franchise finance.
- This fund supports black entrepreneurs who are starting up a new business or expanding an existing one.
- This contribution takes the form of offering debt counselling, quasi-equity and equity finance products.
- The funds contribution ranges from R250 000 to a maximum of R10 million
2. uMnotho Fund:
- This NEF funding has subdivisions in finance, new venture finance, expansion capital, capital markets, and liquidity and warehousing.
- This fund is available to black entrepreneurs who manage or own businesses, new ventures, expanding existing business. It is also available to black entrepreneurs who want to buy a share of equity in black and white owned businesses.
- The contributions from this fund range from R2 million to R75 million.
3. Rural and Community Development Fund:
- This NEF fund has subdivisions in acquisition, new venture capital, expansion capital and start-up/green categories.
- The creation of this government fund is to promote sustainable change in social and economic relations along with supporting and developing the rural economy by financing sustainable enterprises and co-operatives.
- This NEF funding ranges from R1 million to R50 million.
3. Strategic Projects:
- This NEF fund has subdivisions of empowerment objectives.
- The aim of the government fund is to increase black participation in early-stage projects.
- These projects need to have economic merit and the ability to deliver on the government’s development mandate.
How Can You Apply for NEF Funding?
NEF funding is available for start-up and existing businesses. It will conduct the following processes when evaluating your business:
- It will conduct a, self-needs analysis to determine how the NEF funding can assist your businesses needs and which offer is best suited.
- You will need to provide an application form and a comprehensive proposal with evidence that supports the commercial viability and financial position of your business.
- After you’ve submitted your application to the NEF, it will assess your information for final approval and receiving of funds.
- The NEF website offers the following checklist to ensure you include everything needed when applying for funding.
- You’ll need to meet all the requirements or your application won’t be successfully considered.
- This process can take up to six weeks.
- If your application is successful, it could take up to three to four months to receive NEF funding.
Contact Details for NEF Funding
- For more information about the NEF fund, visit www.nefcorp.co.za.
- Email general enquiries to info@nefcorp.co.za
- Or call the following numbers +27 (0)11 305 8000 or 0861 843 633 (call centre).
2
Industrial Development Corporation (IDC) Funding
IDC funding is available to those who have an existing business or wish to start a new one; those that have the visions of job creation along with serving previously disadvantaged communities.
The IDC achieves its goals by providing finance for industrial projects, promoting partnerships between and across industries within SA and internationally. It focuses on projects that finance and facilitate, that lead to the creation and innovation of new industries. It also focuses on diverse expertise to drive growth in priority sectors and to take on higher-risk funding projects.
The IDC supports B-BBEE and actively boosts and promotes black-owned and managed business along with those with employment equity. It aims at developing the skills of black employees and business owners, by supporting local, regional, provincial and national government projects.
The Different Types of IDC Funding
1. Development Funds.
- These funds aim at supporting projects that will have high long-term impacts on the economy through growth.
- Its aim is to bring projects out of the informal sector and into the economic mainstream.
- Please find more information on these funds and links to the online application process here.
2. Agro-Processing Competitiveness Fund
- This government fund provides support and helps businesses to achieve increased competitiveness, business growth, job creation and development in the agro-processing and beverages industries.
- For further information and a link for the online application process please visit here.
3. Product Process Development Scheme (PPD)
- The aim of this fund is to provide financial support to micro and small enterprises where the total assets are below R5 million, annual turnover is less than R13 million, and the business employs less than 50 people.
- The fund intends to promote innovation and technology development with financial support.
- This enables the development of new products and/or processes.
- For more information on the PPD Scheme continue to the website here, to apply for funding, please visit their website http://www.idc.co.za/, click on “Online Funding” and follow the prompts.
4. Risk Capital Facility Programme
- IDC Funding aimed at providing risk finance to businesses owned by previously disadvantaged individuals that offer substantial job creation potential.
- For more information on the Risk Capital Facility Programme continue to the website here, to apply for funding please visit their website http://www.idc.co.za/, click on “Online Funding” and follow the prompts.
This programme provides three channels of funding:
- Direct channel operating alongside IDC’s mainstream business
- Through a niche fund channel
- Third party channel.
5. Transformation and Entrepreneurship Scheme
- This fund finances marginalised groups of South Africans such as women and the disabled.
- The aim of the fund is to gain access to finance that will help to develop and grow your business as a start-up or through expansions or acquisitions.
- This IDC funding also offers mentorship and non-financial support including business planning, training and mentorship.
- For more information on the Transformation and Entrepreneurship Scheme continue to the website here, to apply for funding please visit their website http://www.idc.co.za/, click on “Online Funding” and follow the prompts.
6. Green Energy Efficiency Fund
- The fund aims at improving energy efficiency and helping South Africa become a low-carbon economy.
- It aims to drive down energy related costs, improve production capacity, operational effectiveness and competitiveness, which would aid in job creation.
- For more information on the Green Energy Efficiency Fund continue to the website here, to apply for funding please visit their website http://www.idc.co.za/, click on “Online Funding” and follow the prompts.
How Can You Apply for IDC Funding?
The IDC government funds aims are: Job creation potential, rural development, urban renewal and poverty alleviation, the employment of women and youth as well as up-skilling of employees. All of the projects that the IDC funds, need to show economic viability and sustainability and should target previously disadvantaged groups, women, people with disabilities, low income working groups and marginalised communities.
Contact the IDC for funding
- For more information on any of the funds visit www.idc.co.za, click on “Online Funding” and follow the prompts.
- You can also phone the IDC call centre on 0860 69 38 88
- Or email callcentre@idc.co.za.
3 Small Enterprise Finance Agency (SEFA)
Do you have an existing small business or want to start one? SEFA are piloting direct finance to entrepreneurs wanting to start or grow a business.
Types of SEFA Funding
SEFA provides direct funding to business in loans between R50 000 and R3 million in three different ways: Directly to business owners, via retail finance intermediaries, and through banks using credit guarantee schemes including Khula.
1. Bridging loans
- These are short-term loans, which provide working capital.
- The types of working capital offered by this government fund include stock purchases and operating overheads. This loan is offered for only one year.
2. Term loans
- This government fund is a loan of a specific amount and has a specified repayment schedule, amount and interest rate.
- This type of SEFA funding is normally used to finance your assets that have a medium to long-term lifespan, for example machinery, vehicles, office equipment.
- Term loans can be used to expand your business or for acquisitions.
- This loan has a repayment range of one to five years.
3. Structured finance
- Use this SEFA facility for funding that falls outside the parameters of the term and bridge loans.
- Provided by a debt facility, it can be repaid over a period of five years and tailored to your unique requirements.
- The following businesses can’t apply from the benefits of this fund: Liquor, tobacco, gambling, sex trade, armaments, speculative real estate, leveraged buy-out funds, and illegal trade.
- This includes any business activity that would tarnish SEFA’s reputation, political organisation, entrepreneurs under debt review, insolvent business owners and business.
How to Apply for SEFA Funding?
Your start-up and existing survivalist, micro, small and medium business must meet these criteria:
- Submit a completed application form
- Submit a completed comprehensive business plan that meet SEFA’s application requirements. Include initial and supporting documentation.
- Demonstrated ability to repay loans
- Personal and business credit references
- The applicant must be an owner manager
- The applicant must be a South African citizen with ID documents or a valid permanent residence. Alternatively, the business can be in the control of a South African citizen.
- The business must be legally constituted including sole traders with a fixed physical address
- Must have contractual capacity
- All operations including projects, programmes activities etc. must be within South Africa
- The enterprise must be compliant with accepted corporate governance practices
- A trust that has within the trust deed the power to borrow money and pledge assets as security and to give surety for borrowing.
Contact SEFA for funding
- Visit www.sefa.org.za for more information on regional branches, how to apply, exclusion criteria, products and services available. To contact head office, call 0860 00 73 32.
- To apply for Sefa Funding visit their website http://www.sefa.org.za/, you can either submit your application online or you can print it out and submit to their physical offices. You can see the contact information for both online and physical submissions for all their funds here.
4 The Isivande Women’s Fund (IWF)
This government fund aims at accelerating women’s economic empowerment by supplying cost effective, user friendly and responsive, available finance. The IWF offers support services to improve the success of your business.
It targets business that are starting up, expanding, rehabilitating, franchising and those that need bridging finance. The aim of the fund is to create self-sustaining black and women owned businesses by offering you primary financial and non-financial support.
How to Apply for IWF Funding
The women owned companies need to meet the following criteria to be eligible:
- Operational for 6 months.
- Needs early stage capital for expansions and growth.
- 50% plus one share owned and managed by women.
- Have potential growth and commercial sustainability.
- Improving social impact with employment creation.
Contact IWF for funding
- Businesses that are eligible and need funding between R30 000 and R2 million can submit their application.
- Apply to the IWF through the IDF website or call +27 (11) 772 7910.
- Download the application form here www.idf.co.za.
5 Khula SME Fund
Offered by Khula Enterprise Finance Ltd, this government funds aim is to grow and increase sustainability of small businesses.
The purpose of the fund is to:
- Offers SME’s early-stage and expansion capital.
- Offer early-stage debt funding to business that meet the criteria.
- Support SME’s in rural and peri-urban areas.
- Improve the business owners access to finance.
- Grow businesses so they can create new jobs.
- Encourage meaningful economic involvement of black South Africans.
- Foster entrepreneurship for men and women within the SME sector.
How to Apply for Khula Funding?
The following are the requirements for business wanting to apply for Khula government fund:
- South African SME who have a majority share in their company and who are seeking to start and/or grow their company.
- South African SME’s who have a majority share in their business that is in rural areas.
Contact Khula for funding
- Business that are eligible and need funding can contact Khula at: +27 (0)11 807 8464.
- To apply for Khula funding, visit the SEFA website http://www.sefa.org.za/,you can either submit your application online or you can print it out and submit to their physical offices. You can see the contact information for both online and physical submissions for the Khula Fund here.
6 Black Business Supplier Development Programme (BBSDP)
The Black Business Supplier Development Programme (BBSDP) is a cost-sharing grant that offers black-owned businesses improve their competitiveness and sustainability.
This government grant does not support start-ups, only the expansions of existing business.
The aim of this government grant is to fast-track small and micro-enterprises, encourage links between black-owned businesses, corporates and public sector as well as to complement affirmative procurement and outsourcing.
It provides black entrepreneurs with a grant to a maximum of R1 million.
Do You Qualify for the BBSDP government grant?
- Your business must be a CIPC Registered company or corporation
- 50.1% black owned (Black, Indian or Coloured) or more
- Management team 50% Black
- Trading for at least one year and have financial statements to prove turnover.
- Turnover must be between R250k and R35m per annum
- Valid SARS tax clearance and Vat registered if turnover is greater than R1 000 000.
How to apply for the BBSDP government grant
The following are the documentation that you need to apply for the BBSDP grant:
- CIPC Company registration documents (proof of ownership and shareholding)
- Certified ID of all Directors/ members
- Certified ID of all managers/ staff training (if applicable)
- Certified financial statements for latest financial year (three years if available)
- Management accounts for current year
- Valid SARS tax clearance (with 3 months to expiry or get a new one)
- VAT registration document (where applicable)
- 3 Months bank statements
- 3 Quotations (comparable) for every intervention
- Declaration appointing Graphit as the consultant.
- Company diagnostic questionnaire and application typed on template supplied by Graphit. Please send back as a Word Document
- Domicillium form
- Bank confirmation of your 50% contribution (Will you be able to get finance for your 50% or 20% contribution.) (Clear credit record)
To apply you will need to email all your documentation, all your documents need to be in a PDF format except your application form, which needs to be in word format. Please send them as individual documents.
To apply for the BBSDP government grant, send your documents to alan@bbsdp.co.za.For further information visit the BBSDP government grant website here.
7 Incubation Support Programme (ISP)
Designed to create and develop successful enterprises. These are enterprises with the ability to revitalise communities and local economies.
Do You Qualify for the Incubation Support Programme?
In order to qualify for the Incubation Support Programme you need to be:
- A registered legal entity in South Africa
- A registered higher or further education institution
- A licensed and/or registered science council.
This programme is also available to applicants who want to establish their own incubators or wan t to grow and expand existing ones. The incubator may either offer physical and/or virtual incubation support services. The incubator may be a:
- Corporate incubator
- A private investor’s incubator
- An academic or research institution incubator in partnership with industry
The incubator must be focused on establishing and/or growing enterprises that will graduate to sustainable enterprises.
How To Apply for the Incubation Support Programme
- Applicants can contact the DTI directly or appointed support agencies.
- They can assist you with the application process.
- You need to submit a completed application form to the DTI.
- This must outline the objectives of the project and demonstrate how the incubator would function and be sustainable.
- Submit your applications to the Incubation Support Programme Secretariat at the DTI.
Contact Incubation Support Programme
- Contact: Semakaleng Mangwedi
- Email: SMangwedi@thedti.gov.za
- Contact Number: +27 (12) 394 1073
- Contact: Ambani Ramaru
- Email: ARamaru@thedti.gov.za
- Contact Number: +27 (12) 394 1119
Application enquiries: appisp@thedti.gov.za
Claims enquiries: claimisp@thedti.gov.za
8 National Youth Development Agency (NYDA)
This government grant is moving away from grants for youth and shifting towards mentorship and development programmes. Grants are however, still available for youth entrepreneurs.
Types of NYDA Funding
NYDA awards individual grants to formal and informal businesses that are in the start-up or development phase of their business. These government grants get awarded to co-operatives, which is an autonomous association of people united to meet common economic and social goals through a jointly owned and democratically controlled enterprise. Additionally, another option is community development and facilitation projects.
Do You Qualify for NYDA funding?
- You need to be eighteen years old at the time of application
- Need the grant for business start-up or growth
- You need to be between the ages of 18-35 years with necessary skills, experience or with the potential skill appropriate for the enterprise
- South African citizens and resident within the borders of South Africa
- Are involved in the day-to-day operation and management of the business
- Require grant from NYDA of not less than R1 000 and not more than R100 000.
Upon approval of the grant, if you are employed full time, you could be required to resign from employment and provide grant officer with proof of resignation. This is a requirement so that you can focus an appropriate amount of time on your venture.
How to apply for NYDA funding
NYDA government grants are available to entrepreneurs or co-operatives that meet the following criteria:
- Applicants must be a youth (18 to 35 years old). They must have the necessary skills and experience or show the potential of skills for the business and industry in which they wish to operate.
- Applicants must be South African citizens with ID documents and operate their business within South Africa.
- The applicant must need the grant to start or grow their business i.e. no other source of capital.
- Applicants must involve themselves in the operation and management of the business on a day to day basis and must work on a full-time basis.
- The business may be formal or informal and categorised as a micro-enterprise.
- The enterprise must show, or have potential to be commercially viable and sustainable
- Applicants should be sole traders or in the case of groups have a minimum of five people.
Contact details for NYDA funding
For more information on the NYDA government grant visit www.nyda.gov.za or contact the call centre on 0800 52 52 52.
Source: http://www.entrepreneurmag.co.za/
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Management
Who may and how do you apply for business rescue?
The sort answer to “who apply for business rescue” is – any company or close corporation which is financially distressed may file for business rescue proceedings, except for external companies.

Who can apply for business rescue
Financially distressed is defined in the Companies Act as:
“in reference to a particular company at any particular time means that
i. It appears to be reasonably unlikely that the company will be able to pay all of its debts as they fall due and payable within the immediately ensuing six months; or
ii. It appears to be reasonably likely that the company will become insolvent within the immediately ensuing six months”
As a company is afforded certain protections against creditors during business rescue a company may not merely make a filing when it is not financially distressed. Should the business practitioner’s assessment determine that the company is not financially stressed the process may be cancelled or alternatively, another affected party may also apply to have the process set aside.
An external company is basically a branch of a foreign company operating in South Africa that has been registered with the CIPC.
How do you apply
There are three ways in which business rescue proceedings may be initiated for a company
1. Voluntary business rescue
If the Board of Directors has reasonable grounds to believe that the company is financially stressed as defined above, then they may resolve to voluntarily place the company under supervision.
A copy of the resolution together with a Form 123.1 – Notice of Beginning of Business Rescue Proceedings must be filed with the CIPC.
The board of directors cannot adopt such a resolution if liquidation procedures have been initiated by or against the company
The application for business rescue will be voided if the company does not
- Within 5 days of having adopted and filed the resolution
- Publish a notice of the resolution to every affected person together with a sworn statement of the facts relevant to the grounds on which the board resolution was founded; and
- Appoint a business rescue practitioner who has consented in writing to accept the position.
- File a notice of the appointment a practitioner within 2 days of the appointment and
- Publish a notice of the business rescue practitioner’s appointment to all affected parties within 5 days of it being filed.
If the business rescue proceedings are voided the company may not make another application for a period of 3 months.
If the Board of directors reasonably believes a company is distressed but does not resolve to initiate business rescue proceedings, it is obliged to advise all affected persons of the applicable criteria and reasons for not adopting a business rescue resolution.
2. Compulsory or court ordered business rescue
In this case an affected person may apply to the court to have the company placed in business rescue.
An affected person may be one of the following
- A creditor
- An employee or a trade union representing the employees
- A Shareholder
An affected person making an application to court is required to notify all affected parties, the company and the CIPC of the application and these parties may also participate in the hearing.
All affected parties must be informed within 5 days of any order being granted.
3. Court order during liquidation proceedings
As per option 2, an affected person may apply to the court to have the company placed in business rescue at any time during liquidation proceedings.
The liquidation application pending at the time that an application for business rescue proceedings is made is stayed until the court has dispensed with the application or the business rescue proceedings have been concluded.
A company that has been placed into business rescue in terms of a court order may not apply for liquidation until the business rescue is concluded.
Business Rescue with Adarna
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Management
What Business Practitioner is Required?
If you are considering Business Rescue then you might be wondering what Business Practitioner is required for your business.

Business Rescue Practitioner Categories
If you are considering that question then you are in the right place, so let’s dive right in.
So when considering what Business Practitioner is required you need to understand that Business Rescue Practitioners fall into 3 categories:
- Senior Practitioner – actively engaged with business rescue for a period of at least 10 years.
- Experienced Practitioner – actively engaged with business rescue for a period of at least 5 years
- Junior Practitioner – actively engaged with business rescue for a period of at least 5 years
Company Classification
Companies undergoing business rescue fall into 3 categories
1. Large Companies
A company other than a state-owned enterprise with a public interest score greater than 500
2. Medium Companies
a. A public company with a public interest score of less than 500
b. A company other than a state-owned enterprise with a public interest score greater that 100 but less than 500
3. Small companies
A company other than a state-owned enterprise with a public interest score less than 100
Appointment Criteria
A Junior Practitioner may be appointed as a BRP to a small company
An Experienced Practitioner may be appointed as a BRP to a Small or Medium company. An
experienced BRP may also be appointed to a large company or state-owner enterprise but must be
assisted by a Senior Practitioner
A Senior Practitioner may be appointed as a BRP to any company
Public Interest Score
The public interest score is defined in the Companies Act and is calculated as the sum of
- Number of points equal to the average number of employees during the year
- One point for every R1 million of third-party liability at the financial year end
- One point for every R1 million turnover during the year
- One point for every individual who, at the financial year end, is known to the company
- In the case of a profit company to, directly or indirectly have a beneficial interest in any issued securities of the company
- In the case of an NPO to be a member of the company or a member of an association who is a member of the company.
Business Rescue Practitioner Rates
In terms of the companies Act a BRP can charge a company in business rescue for remuneration and expenses according to a tariff prescribed by the Minister.
The BRP may also propose additional remuneration – a contingency/success fee based on
- The acceptance of a business plan (within a certain timeframe) or certain matters being included in the plan
- The attainment of a certain result/s
The BRP rates are specified in the Companies Act Regulations; however, these rates have not been adjusted for a number of years and it is normal when negotiating a fee with a client for these fees to be adjusted for inflation.
The basic remuneration as per the current tariff prescribed by the Minister stipulates that the remuneration cannot exceed:
- Small Companies – R1 250/hour or R15 625/day (incl. VAT)
- Medium Companies – R1 500/hour or R18 750/day (incl. VAT)
- Large Companies – R2 000/hour or R25 000/day (incl. VAT)
In addition to above the BRP can be reimbursed for any expenses they incur in performing their duties.
Business Rescue with Adarna
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Management
What is the business rescue timetable
Ever wondered what the what is the business rescue timetable? The business rescue proceedings are defined in chapter 6 of the Companies Act and are administered by the CIPC.

Background
As companies entering business rescue are financially stressed, time is of the essence and any rescue plan needs to be compiled and implemented as soon as is practically possible.
The process is accordingly well-defined and requires strict adherence to a number of deadlines with serious consequences should they not be met.
While it is possible to apply to the CIPC or if relevant the court, for an extension for number of deadlines, this article attempts to provide a general timetable of events that need to occur. The timetable below is applicable to the voluntary process of applying for business rescue as opposed to a court order.
Business Rescue Timetable
1. Application
The board of directors must file the prescribed form and a copy of the resolution with the CIPC.
Within 5 days of the board of directors having adopted and filed a resolution to commence business rescue proceedings they must
- Publish a notice of the resolution to every affected person together with a sworn statement of the facts relevant to the grounds on which the board resolution was founded; and
- Appoint a business rescue practitioner who has consented in writing to accept the position.
2. Business rescue practitioner appointment
The board of directors must
- File a notice of the appointment a practitioner within 2 days of the appointment and
- Publish a notice of the business rescue practitioner’s appointment to all affected parties within 5 days of it being filed.
A failure to comply with 1 and 2 will void the business rescue proceedings.
3. Duration
If the business rescue proceedings have not been concluded after 3 months the business rescue practitioner needs to prepare a report on the proceedings. They will then need to update it at the end of each subsequent month until the end of proceedings and deliver it to each affected person and the CIPC.
4. Directors cooperation
With 5 days of the commencement of business rescue proceedings, or such longer period that the practitioner allows, the directors of a company must provide the practitioner with a statement of affairs which contains as a minimum certain information as specified in the Companies Act
5. Practitioner’s remuneration
Any creditor or shareholder who voted against the proposed remuneration for the practitioner may apply to the court within 10 business days for an order setting aside the agreement
6. First meeting of creditors
Within 10 days of being appointed the business rescue practitioner must convene and preside over a first meeting with creditors
The practitioner must determine who are secured, unsecured or concurrent creditors. The practitioner may have the value of a concurrent creditor’s claim independently appraised. In this instance the practitioner must give the concurrent creditor notice of that appraisal at least 15 days before the meeting to determine the future of company (as per 9 below).
Within 5 days of receiving the appraisal the creditor can apply to the court to review the appraisal.
7. First meeting of employees
Within 10 days of being appointed the business rescue practitioner must convene and preside over a first meeting with employees
8. Publication of business plan
The business rescue plan must be published within 25 days after the date on which the practitioner was appointed.
9. Meeting to determine the future of company
Within 10 days of publication of the plan, the practitioner must convene and preside over a meeting of creditors and any other holders of a voting interest to consider the proposed business rescue plan
- At least 5 business days before the meeting the practitioner must deliver a notice of the meeting to all affected persons
- If a vote is taken regarding the business rescue plan and an affected party or the practitioners intends to apply to court to have the vote set aside the practitioner must adjourn the meeting for 5 days to allow the court to deal with the matter
- If, on the request of the practitioner or called upon by an affected person to prepare and publish a revised business rescue plan in terms of the provisions of the Act, the practitioner must do so within 10 business days.
- If an affected person makes an offer to acquire the rights and claims of another affected person as provided for, the practitioner must adjourn the meeting for no more than 5 days to make the necessary revisions to the business rescue plan.
Termination
The business rescue process terminates when either
- The court
- Sets aside the resolution on which the business rescue proceedings were initiated
- Has converted the proceedings to liquidation proceedings
- The practitioner has filed a notice of the termination of business rescue proceedings or
- The business rescue plan has been
- Rejected and no person acted to extend the proceedings
- Adopted and the practitioner has subsequently filed a notice of substantial implementation of that plan.
Conclusion
While the Companies Act provides for a defined time frame the financial reality of the company will often dictate that timing of the process. Successful business rescue proceedings often take substantially longer that provided for in the Companies Act.
Business Rescue with Adarna
Looking for Business Rescue Practitioners? Look no further than Adarna. With decades of business experience our registered Business Rescue Practitioners and Business Turnaround Experts are here to assist you and your business.

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What Business Practitioner is Required?
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