Description
LML4806 ASSIGNMENT 2 SEMESTER 1 – 2023 (816869)
Advise Mr Mahlangu on the following aspects:
1.1 With reference to the Companies Act 71 of 2008 and relevant case law, discuss whether the board of directors may commence business rescue proceedings (assuming that Mahlangu Roadworks (Pty) Ltd is financially distressed) after liquidation proceedings have been initiated against Mahlangu Roadworks (Pty) Ltd. Discuss further whether Mahlangu Roadworks (Pty) Ltd may be placed under business rescue by any other party after a liquidation application has already been instituted against the company as well as after a liquidation order has been issued against the company.
1.1Â Â Â Â Â Â Â Â Â Â Â Â Â Assuming that Mahlangu Roadworks (Pty) Ltd is financially distressed, discuss whether, instead of going down the route of business rescue, the company may enter into a compromise arrangement with its creditors and thereby prevent dissolution of the company if a liquidation order is issued, and what such a procedure would entail.
1.3 Assuming Mahlangu Roadworks (Pty) Ltd is placed under business rescue, explain to what extent the business rescue practitioner may prevent the lessors of the heavy-duty equipment from cancelling the lease contracts and re-possessing the heavy-duty equipment if the company misses any payment.
