Rehabilitating financially distressed companies

Become a Licensed Business Rescue Practitioner

About Business Rescue

In South Africa, Business Rescue was introduced in Chapter 6 of the new Companies Act 2008 (Act 71 of 2008) and provides for the rescue, recovery and turnaround of companies in financial trouble.

 

A company that is experiencing financial distress may apply to the CIPC to be put into business rescue. If its request is granted, a business rescue practitioner is appointed to draw up a plan to put the business back on its feet, get the buy-in of creditors and other stakeholders, and then implement the plan. While the business rescue is in progress, creditors cannot sue the company for repayment.

 

Accountants can act as Business Rescue Practitioners, opening a new revenue stream for practices.

Requirements to qualify as a Business Rescue Practitioner (BRP)

Section 138 of the Companies Act, 2008 regulates the qualifications required for a business rescue practitioner.

In order to qualify as a BRP, a person must be:

  1. a member in good standing of an accounting, legal or business management professional body accredited by CIPC (section 138(1)(a)); thus, accredited by an institution like CIBA and
  2. be licensed as such by CIPC (section 138(1)(b)).

Read the revised CIPC requirements for licensing a BRP here.


Note that Recognition of Prior Learning (RPL) candidates do not qualify as per CIPC policy.

CIBA as Accredited Institution

The Companies and Intellectual Property Commission (CIPC) has accredited the Chartered Institute for Business Accountants (CIBA) as a professional body for business rescue practitioners in terms of Section 138(1) of the Companies Act, 2008.

CIPC issues a list to verify accredited institutions. Read the list here.

 

As and accredited institution CIBA is responsible for:

  1. Ensuring that members are competent and able to provide high-quality services and accountable for the work they perform.
  2. Providing opportunities and monitoring Continuous Professional Development (CPD)
  3. Reporting CPD compliance and non-compliance.

The Responsibilities of a BRP

CIBA registered BRPs are responsible for:

  1. Identifying and completing relevant CPD as required by the CIPC and CIBA,
  2. Keeping records of CPD,
  3. Renewing their license annually,
  4. Perform business rescue services ethically and in good faith, and, for a proper purpose in the best interest of the company with care, skill and diligence.

Obtain Statutory Recognition

CIBA has developed a specialist license for those members who wish to become Business Rescue Practitioners (BRP). The license is in the format of an exam supported by a prescribed text book and a study guide.

Lecturer and Industry Expert

Dr Eric Levenstein of Workmans Attorneys, has developed both the exam and the exam preparation.

He has extensive experience in:

Watch the video below to view his introduction to the License.

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