11/10/2026
Legal Update: ⚖️
This week the Constitutional Court clarified an important question for South African businesses and creditors.
On 7 October 2026, the Court held that Chapter 6 of the Companies Act does not permit post-commencement creditors to vote on the adoption of a business rescue plan and confirmed that Post Commencment Creditors' claims have a statutory preference. 📖
The Court also found that the plan before it had not met the statutory voting threshold and ordered that the matter return for a fresh vote. 👨⚖️👩⚖️
Business rescue can involve complex questions about financing, creditor rights and corporate decision-making. Understanding the applicable process is important before taking action.
E Sa Attorneys assists with corporate, commercial and insolvency-related legal matters. Need assistance with a creditors claim, business rescue or liquidation related matters Contact us today!
This does not constitute legal advice.
