S135 Business Rescue

Section 135 – Business Rescue

Section 135 of the Companies Act surrounding Business Rescue Proceedings was amended to accommodate utility expenses incurred by landlords of companies while in business rescue as post-commencement financing. In addition, the preference of payment rights regarding post-commencement financing and unsecured claims has been amended to accommodate landlord utility-related expenses.

The Companies Act Amendments 2024:

Pertinent changes were made to our South Africa Companies Act after the Companies Amendment Act 2024, No. 16 and the Companies Act Second Amendment, 2024 No. 17 were ascended into law on 25 July 2024.

The above amendments came into effect after proclamation was made in the Gazette during December 2024.

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