Abstract:
ORIENTATION : To resuscitate financially distressed companies in South Africa, business rescue
as introduced through the enactment of Chapter 6 of the Companies Act 71 of 2008 requires the
business rescue practitioners (BRPs) to take management and financial control as part of their
specific powers and duties.
RESEARCH PURPOSE : This study investigated what practices BRPs apply in order to achieve
management and financial control.
MOTIVATION OF THE STUDY : Business rescue practitioners are faced with complex assignments
with no clear measurements in practice, thus making judgements subject to the perception of
the enquirer. It was important to better understand the practices applied by BRPs to achieve
management and financial control.
RESEARCH DESIGN, APPROACH AND METHOD : A qualitative study was conducted and 13 BRPs
within the Gauteng Province were approached. These BRPs were registered with the
Companies and Intellectual Property Commission and consisted of junior, senior and
experience BRPs. A thematic analysis was conducted to analyse the interview data. This study
was approved by the Research Ethics Committee of the Faculty of Economics and Management
Sciences at the University of Pretoria.
MAIN FINDINGS : The findings indicate that management control is pursued via four main
categories of tasks: meeting with stakeholders; clarification of roles; taking control of
decision-making and understanding the business model. Taking financial control consists of
managing finances, examining key financial information and engaging with financial people.
PRACTICAL/MANAGERIAL IMPLICATIONS : For practitioners and educators, this study highlights the
importance of using these practices to take control and remain in control in conjunction with
management to achieve a productive rescue outcome.
CONTRIVUTION/VALUE-ADD : This study minimises the gap that exists in the literature, detailing
the specific activities conducted to achieve management and financial control and how to
remain in control.
