Companies Act, 2008 (Act No. 71 of 2008)RegulationsCompanies Regulations, 2011Chapter 6 : Business RescuePart B : Business Rescue Practitioners127. Restrictions on practice |
See section 138 (3)(b)
| (1) | This regulation— |
| (a) | applies to any person who is eligible to be appointed as a business rescue practitioner in terms of section 138 (1)(a) and (b), irrespective of whether that eligibility arises in terms of a license issued by the Commission, or otherwise as contemplated in section 138(1)(a); and |
| (b) | is subject to any more restrictive condition imposed by the Commission in terms of regulation 126(6)(b), in the case of a licensee contemplated in section 138 (1)(b). |
| (2) | For the purposes of this regulation, and in Regulation 128— |
| (a) | "business turnaround practice" means activities of a professional nature engaged in before the effective date, that are comparable to the functions of a business rescue practitioner in terms of the Act; |
| (b) | Companies undergoing business rescue proceedings are classified in the following three groups: |
| (i) | "large companies", being any company, other than a state owned company, whose most recent public interest score, as calculated in terms of regulation 26(2), is 500 or more; |
| (ii) | "medium companies" being— |
| (aa) | any public company whose most recent public interest score, as calculated in terms of regulation 26(2), is less than 500; or |
| (bb) | any other company, other than a state owned company, whose most recent public interest score, as calculated in terms of regulation 26(2), is at least 100 but less than 500; and |
| (iii) | "small companies" being any company, other than a state owned or public company, whose most recent public interest score, as calculated in terms of regulation 26 (2), is less than 100; and |
| (c) | Persons eligible to be appointed as practitioners are classified in the following three groups: |
| (i) | "senior practitioner" means a person who is qualified to be appointed as a business rescue practioner in terms of section 138 (1) and who, immediately before being appointed as practitioner for a particular company, has actively engaged in business turnaround practice before the effective date of the Act, or as a business rescue practitioner in terms of the Act, for a combined period of at least 10 years. |
| (ii) | "experienced ", being a person who is qualified to be appointed as a business rescue practioner in terms of section 138 (1) and who, immediately before being appointed as practitioner for a particular company, has actively engaged in business turnaround practice before the effective date of the Act, or as a business rescue practitioner in terms of the Act, for a combined period of at least 5 years; |
| (iii) | "junior practitioner", means a person who is qualified to be appointed as a business rescue practitioner in terms of section 138 (1) and who, immediately before being appointed as practitioner for a particular company, has either— |
| (aa) | not previously engaged in business turnaround practice before the effective date of the Act, or acted as a business rescue practitioner in terms of the Act; or |
| (bb) | has actively engaged in business turnaround practice before the effective date of the Act, or as a business rescue practitioner in terms of the Act, for a combined period of less than 5 years. |
| (3) | A junior practitioner— |
| (a) | may be appointed as the practitioner for any particular small company; but |
| (b) | may not be appointed as the practitioner for any medium or large company, or for a state owned company unless as an assistant to an experienced or senior practitioner. |
| (4) | An experienced practitioner— |
| (a) | may be appointed as the practitioner for any particular small or medium company; but |
| (b) | may not be appointed as the practitioner for any Large company, or for a state owned company unless as an assistant to a senior practitioner. |
| (5) | A senior practitioner may be appointed as the practitioner for any company. |