Companies Act Authority
The Companies and Intellectual Property Commission (CIPC) has, accredited SAIBA as a professional body for business rescue practitioners in terms of Section 138(1) of the Companies Act, 2008.
Business rescue, as defined by the Companies Act 2008, aims to facilitate the rehabilitation of a company that is "financially distressed" by providing for: the temporary supervision of the company and management of its affairs, business and property by a business rescue practitioner, a temporary moratorium ("stay") on the rights of claimants against the company or in respect of property in its possession and the development and implementation (if approved) of a business rescue plan to rescue the company by restructuring its business, property, debt, affairs, other liabilities and equity.
Chapter 6 of the Companies Act, 2008 requires that SAIBA establish and maintain proper mechanisms to ensure that its members achieve professional competence with regard to Business Rescue. This is achieved by providing recognition for prior experience and knowledge.
SAIBA are obligated by the Companies Act, 2008 to ensure that SAIBA members that provide business rescue services to clients, are:
- competent and able to provide high quality services,
- accountable for the work they perform,
- committed to relevant CPD, and
- aware of their role and responsibility to clients, and society.
Our License for Business Rescue aims to achieve this.
Licensed Business Rescuer
This license is accredited by SAIBA and authorises the member to perform a specialist service within the standards of engagements as set by SAIBA.
The license is not the equivalent of a designation nor a qualification.
Purpose of the license
Equip business accountants to perform quality business rescue engagements with confidence.
The SAIBA license qualifies accountants to register with CIPC as a Business Rescue Practitioner.
After completing this license the designated member will be:
- Be equipped with the necessary skills to fulfil their statutory duties in accordance with the letter of the law.
- Be guided on how to advise and protect the interests of directors, creditors, shareholders or employees of a company in financial distress.
- Understand and practically apply the provisions of the Companies Act pertaining to all legal aspects of business rescue.
- Be able to register with the CIPC as a Business Rescue Practitioner.
- Have evidence of your competence in the Business Rescue specialist area.
- Qualify to register for SAIBA’s “Experience-through-exposure” (ETE) programme starting 1 Nov 2020.
The following topics are covered in the license
Introduction to business rescue and important definitions
Grounds for commencement of business rescue proceedings
Commencement by board resolution
Commencement of business rescue proceedings by order of court and the duration of business rescue
Legal consequences of business rescue proceedings: the general moratorium on legal proceedings and the protection of property interests
Legal consequences of business rescue proceedings: effects on employment and other contracts
Post commencement finance
Legal consequences – the effects on shareholders, directors and creditors
The business rescue practitioner: qualifications and appointment
The business rescue practitioner: power, duties and liabilities
The business rescue plan
Compromise with creditors in terms of section 155
Why a SAIBA license for business rescuers
The South African economy is being placed under pressure by the Covid 19 pandemic. More and more companies are facing severe financial distress and as a result there is an urgent requirement for the application of the business rescue process.
We have seen high profile business rescue filings in the news such as SAA, Comair, Edcon and Pumulela. Never before has the Business Rescue process been as relevant as it is right now! Business rescue provides an alternative option for saving a company teetering on the brink of insolvency, that of a fresh start, and needs to be considered by all those involved with the failing entity.
The Companies Act no 71 of 2008 allows accountants to become Business Rescue Practitioners, opening up a new revenue stream for their businesses. Business Rescue is a specialist area and a Business Rescue license provide the evidence required that you have mastered the subject area and will be able to deliver quality work as a Business Rescue Practitioner(BRP).
SAIBA is a CIPC accredited professional body for business rescue practitioners and offers a practical exam preparation course, to qualify as SAIBA Licensed Business Rescue Practitioners.
If you want to perform business rescues you have to be licensed
The SAIBA Licensed Business Rescuer (LBR) is a professional license that is awarded to:
- members of SAIBA, that have
- obtained a CBA(SA), CFA(SA) or BAP(SA) designation, and who
- wants to qualify as a Business Rescue Practitioner with the CIPC, and
- has a minimum of 5 years of relevant post-designation experience.
Branded, secure, and verifiable digital certificates
- Obtain branded, secure, and verifiable digital certificates and badges.
- Your certificates can't be duplicated or faked.
- With a single click, you and potential clients/employers can verify the achievement is legitimate.
- Social media ready.
- We automatically optimize your certificates and badges to display perfectly on any screen size, so they always look good.