FMF NEWSLETTER 19 February 2020


FMF NEWSLETTER 19 February 2020   
ARTICLE of the week  

Business rescue: Politicians must familiarise themselves with the law – JACQUES JONKER

Certain senior politicians seem to have a misapprehension of how business rescue works in South Africa, particularly as it regards the situation at South African Airways (SAA). Some within the ruling party recently indicated that government will intervene to “retain the [sic] SAA as a state-owned enterprise”. This cannot legally be done.

Government, as the sole shareholder in SAA, would apparently “step in” if the business rescue practitioner (BRP) takes decisions it does not “like”. Apparently, despite this certainly not being the case in law, BRPs “report to” government, because it is the sole shareholder of SAA, and therefore government may intervene as and when it pleases.

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