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 recently 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 amended provisions are not yet operational and will come into effect after President Cyril Ramaphosa makes proclamation in the Gazette as to the effective date.

Statucor continues to unpack the amendments and the effect that they may have on our valued clients, and we look forward to publishing further communications on our observations in future. Click here for a full summary of all changes made to the Companies Act through the 2024 Amendments or view our News page for our latest articles on the Companies Act, Governance and Compliance matters that may be pertinent to you.