The Companies and Intellectual Property Commission (CIPC) has, on 8 July 2024, issued a stern warning to business rescue practitioners (BRPs).
Section 132 of the Companies Act mandates a business rescue practitioner to file monthly progress reports when a business rescue exceeds a period of three months. The progress reports must be delivered to either the court (if the business rescue was commenced by way of a court order) or to the CIPC until such as the business rescue proceedings have been formally concluded.
The CIPC is aware that business rescues can continue for well over the three-month period without the BRP furnishing any reasons for the delay or updating affected parties as to the status of the rescue.
CIPC has advised defaulting BRPs that any applications brought by them to renew their practitioner licenses will be rejected unless all required progress reports have been filed with the CIPC. It follows that BRPs must ensure that they file their reports with the CIPC and all other affected parties before their license can be renewed.
A BRP license is valid for a period of three years.
REJECTION_OF_BRP_LICENSE_RENEWAL_APPLICATION_Notice_44_of_2024.pdf (mcusercontent.com)