Can you challenge a dismissal when the company is in business rescue?
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GUEST: Gareth Cremen Cox Yeats Partner AND Kagiso Lebethe - Senior Employee Relations Specialist
Facing dismissal after years of service can be tough, but what happens when the company goes into business rescue before you can challenge the decision? The Companies Act 71 of 2008 places a moratorium on legal proceedings against companies undergoing business
rescue. In terms thereof, no legal proceeding may be commenced or proceeded within any forum against a company which has entered into business rescue proceedings, except amongst other exceptions, with the written consent of the business rescue practitioner,
or leave of the court. Without the necessary consent or leave, a party must await the conclusion of the business rescue proceedings before it may institute legal action.
Facing dismissal after years of service can be tough, but what happens when the company goes into business rescue before you can challenge the decision? The Companies Act 71 of 2008 places a moratorium on legal proceedings against companies undergoing business
rescue. In terms thereof, no legal proceeding may be commenced or proceeded within any forum against a company which has entered into business rescue proceedings, except amongst other exceptions, with the written consent of the business rescue practitioner,
or leave of the court. Without the necessary consent or leave, a party must await the conclusion of the business rescue proceedings before it may institute legal action.