BACKGROUND : A business rescue plan has to comply with a new and vague set of
obligations regulated by South African legislation. Expectations of the plan are
largely unknown, yet crucial in determining compliance. Establishing an effective
benchmark for the plan is essential for the growth and success of the industry.
PURPOSE : The study set out to answer these questions: What are the most
crucial elements needed to fill the gap between the specifics of the Companies
Act (2008) and the further elements needed to meet the plan’s primary objective
of providing adequate information to stakeholders? What are the international
principles applicable to rehabilitation plans and what elements underpin them?
METHOD : Thirteen industry experts were selected and interviewed to identify the
most crucial elements of the business rescue plan. Sampling was a combination
of convenience and purposive sampling. Data collection obtained data on
subjects’ opinions, rankings, agreement and ratings.
RESULTS : The study was able to confirm that there is indeed a gap between the
mandatory elements prescribed in section 150(2) and the provision of sufficient
information required by section 150(1) of the Companies Act No. 71 of 2008. The
survey revealed that in the subjects’ expert opinion, the international principles
are applicable to the business rescue plan.
CONCLUSION : The crucial elements of the rehabilitation plan selected by the
experts offer insight and clarity in terms of what is expected of the plan.