On 6 November 2006 Ntombi Langa Royds and Jan van der Walt of the Turnaround Management Association - Southern Africa made presentations to:
- Tshepo Mongalo (Project Manager: Company Law Review) of the Department of Trade and Industry.
- A number of directors of National Treasury.
The presentation covered the following:
- Turnaround situations.
- Causes of distress.
- Turnaround strategies.
- Turnaround industry in South Africa.
- Turnaround industry driving forces.
- Turnaround industry constraints.
- Government interventions - new business rescue legislation, new Companies Act, business rescue funding, labour legislation, taxation.
Email received from National Treasury: "Thank you for taking the time to meet with us - we were very impressed with the quality of the presentations. I trust that we will work well together on a going forward basis and that we can play a part in assisting the turnaround of South African businesses".
National Treasury has requested TMA-SA to conduct a survey regarding the chances of success of the different stages in the timeline of financial distress. The survey is being formulated.
In addition, National Treasury has requested TMA-SA to be available to play a facilitating role between a number of government departments.
The Department of Trade and Industry announced that new business rescue legislation will be promulgated in October 2007. The dti also requested TMA-SA to make a proposal regarding business rescue legislation, including certification of supervisors.
This turnaround news flash was brought to you by Turnaround Solutions - turnaround management consulting firm rescuing distressed companies and improving results of underperforming companies in South Africa.