PURPOSE : It is widely accepted that stakeholders play a role in the turnaround of an organisation.
However, the exact role is unclear. This study set out to investigate the roles of stakeholders in
the success of business rescue through the lens of stakeholder theory.
DESIGN/METHODOLOGY/APPROACH : The study research design is qualitative following an
exploratory approach. The choice of technique for the study was semi-structured interviews.
FINDINGS/RESULTS : The findings indicate that key stakeholders go beyond affected parties as
described by Chapter 6 of the Companies Act. Creditors are considered the most influential
stakeholders due to their ability to vote on the business rescue plan, followed by postcommencement
funders and employees, to ensure business continuity. Customers were given
the same level of importance by the business rescue practitioners as other affected parties. Due
to the dynamic nature of business rescue, business rescue practitioners prioritise resourceful
stakeholders when managing the process. A simplified framework illustrating roles of
stakeholders during business rescue is presented.
PRACTICAL IMPLICATIONS : Stakeholder management should be recognised as a valuable exercise
that must be allocated time and resources. Business rescue practitioners should recognise
stakeholder influences at different stages of the business rescue process.