Article provided by CIPC
Business rescue was created by the drafters of the Companies Act, 2008, largely in substitution of the concept of “judicial management” that was created in the 1926 Companies Act, as a means of assisting financially ailing companies.
Business rescue or corporate rescue refers to the restructuring or reorganization of a corporate entity. It is aimed at moving away from the culture of liquidation, and rather focusing on getting “financially distressed” entities back on their feet.