Chapter 6: Business Rescue
Part B: Business rescue practitioners
R127: Restrictions on practice
- (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 practitioner', 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.
Related Regulations
R26: Interpretation of regulations affecting transparency and accountability
R126: Accreditation of professions and licensing of business rescue practitioners
R128: Tariff of fees for business rescue practitioners
Related Sections
s138: Qualifications of practitioners
Related Notes
No related note.
Related Forms
No related forms.