One of the frequently asked questions we encounter is if a Close Corporation may also resolve to commence business rescue.
The Close Corporations Act does not contain any provisions similar to Chapter 6 of the Companies Act. Some are therefore under the impression that a Close Corporation cannot commence business rescue proceedings.
This is however incorrect as the Close Corporation Act is amended in the Schedule to the Companies Act.
There is therefore no doubt that a Close Corporation may resolve to commence business rescue proceedings, we have in fact been successfully appointed as business rescue practitioners for various Close Corporations.
The only difference in the regards to the business rescue process is that the members of the Close Corporation is regarded as the shareholders as well.
