Corporate Renewal Solutions Blog

View of and news about the topics and industries of corporate renewal, business transformation, turnaround and business rescue in South Africa.

Sunday, November 19, 2006

TMA-SA's presentations to government on improving turnaround and business rescue in South Africa

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.

on Improving turnaround and business rescue in South Africa - how government can contribute, and how TMA-SA can assist.

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.