Cawood N.O v Murray N.O and Others (A127/19)
Cawood N.O v Murray N.O and Others (A127/19) [2021] ZAGPPHC 859; 2024 (6) SA 222 (GP) (12 December 2021)
The court held that while there is no direct precedent for forfeiture of business rescue practitioners' fees, the inherent power of the court to sanction practitioners for misconduct is established in South African law. The BRPs failed to fulfil their statutory duties under the Companies Act, acted to the detriment of creditors and shareholders, and their conduct warranted censure. However, the court found insufficient evidence to justify setting aside the resolutions placing the companies under business rescue. The order of the court a quo denying the BRPs their fees was set aside, as was th…
Source excerpt
- Business Rescue Practitioner Fees
- Conversion To Liquidation
- Court Inherent Powers
- Remuneration Forfeiture