10 July 2017 - The Companies and Intellectual Property Commission (CIPC) has, on 28 June 2017, accredited the South African Institute of Chartered Accountants (SAICA) as a professional body for business rescue practitioners in terms of Section 138(1) of the Companies Act, 2008.
Business rescue, as defined by the Companies Act 2008, aims to facilitate the rehabilitation of a company that is "financially distressed" by providing for: the temporary supervision of the company and management of its affairs, business and property by a business rescue practitioner, a temporary moratorium ("stay") on the rights of claimants against the company or in respect of property in its possession and the development and implementation (if approved) of a business rescue plan to rescue the company by restructuring its business, property, debt, affairs, other liabilities and equity.
Business rescue was included in the South African legal framework by the Companies Act as an alternative to judicial management with effect from 1 May 2011.
“Changes to regulation of business rescue practitioners, particularly to the registration of practitioners, will take effect as from 1 October 2017,” said Juanita Steenekamp, Project Director: Governance and Non-IFRS Reporting at SAICA.
“Currently business rescue practitioners apply directly to the CIPC for an individual license to practice as a business rescue practitioner. In future professional bodies will be accredited and in turn their members will then be licensed by the CIPC. No person will be licensed if they are not a member in good standing of a professional body accredited by the CIPC. SAICA members can continue their career as business rescue practitioners with SAICA as their accredited professional body,” she added.
Other accredited professional bodies includes the South African Institute of Professional Accountants and the Institute of Accounting and Commerce.
The South African Institute of Chartered Accountants (SAICA), South Africa’s pre-eminent accountancy body, is widely recognised as one of the world’s leading accounting institutes. The Institute provides a wide range of support services to more than 40 000 members who are chartered accountants [CAs(SA)] and hold positions as CEOs, MDs, board directors, business owners, chief financial officers, auditors and leaders in their spheres of business operation. Most of these members operate in commerce and industry, and play a significant role in the nation’s highly dynamic business sector and economic development.
SAICA Media Contact:
Kulani Irish Chauke
Coordinator: Corporate Communications
SAICA Brand Division
Tel: 011 479 0698
SAICA Subject Matter specialist:
Project Director: Governance and Non-IFRS reporting
SAICA Standards Division
Tel: 011 621 6927