Vol 20 (2023) - Issue 1

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Keep Calm: We Are Coming to the Rescue!

Synopsis
In this article, we explore, from a South African perspective, directors' rights, duties and obligations, before and during the business rescue process. Moreover, we consider the practical approaches that ought to be taken by directors when the company, on whose board they sit, is facing financial difficulties. As a pretext to the discussion, we briefly set out certain aspects of the South African law that are relevant for directors, such as the standards for director conduct and the potential claims that may be brought against directors in South Africa if they fail to comply with their duties and obligations.
For more information in regard to the process and status of business rescue in South Africa, please see Insolvency, Business Rescue & Restructuring – Werksmans, and particularly the booklets embedded therein.