The viability of reduced oversight by the Master of the High Court in insolvency proceedings

Abstract

This study analyses the necessity of the involvement of the Master of the High Court, as the insolvency regulator of South Africa, in insolvency proceedings. The analysis is undertaken against the background of some of the delays experienced by the insolvency industry due to the oversight role of the Master of the High Court. These include delays with the appointment of trustees or liquidators; convening of the first creditors meeting and confirmation of the liquidation and distribution account. The study evaluates whether oversight is indeed necessary and considers the viability of existing solutions to oversight-related delays. The position in South Africa is benchmarked against the legal framework of Germany, in order to determine whether any lessons can be learned from foreign trends. The study finds that there is a dire need for reduced oversight by the Master. It concludes with solutions to enhance the legal framework in order to support the efficient resolution of insolvency proceedings.