Rob Green

Archive for the ‘Business’ Category

There is a rumour doing the rounds that the PIAI manual is a scam and that this is some sort oh Phishing expedition – it is not.

In general the PAIA legislation creates the framework to the right to access information enshrined in section 32 of the Constitution.  The purpose of this legislation is to promote a culture of transparency, accountability and good governance both in the private and public sectors. Therefore, the Act places specific compliance requirements on both state institutions and private sector. PAIA gives a requester the right to lodge a request from the information officer (head) of a private body-

A private body as defined in the Act includes

•  A natural person who carries or has carried on any trade, business or profession,
• A partnership which carries or has carried on any trade, business or profession or
• Any former or existing juristic person, but excludes a public body,including close corporations, non-profit organizations and trusts.

The Act further defines the head of a private body as “the chief executive officer or equivalent officer of the juristic person or any person duly authorized by that office….”

In terms of section 51 of PAIA, the head of a private body must:

• compile a section 51 manual which is a roadmap of the company
• submit the manual to the South African Human Rights Commission
• effect material changes if any each time these occur and resubmit to the SAHRC
• update any material changes on the manual on a regular basis;
• make the manual available as prescribed by the Act at the company offices and on their website;
• must  annex a request form to the manual and  also make request form available on the    website and at the company premises access points;
• there are penalties for non compliance –

The manual must among others contain the following information:

• details of the company’s postal, email and street address, fax and phone of the company,
• the description of available records generated by the company stating those which are automatically available and those that are available on request.
• outline the request procedure in terms of PAIA;
• state who the head of the company is (CEO is usually the  Information Officer in terms of PAIA)
• stipulate the fees applicable as legislated by the Act which are chargeable to requesters
• remedies available to requesters if their request for information has been refused
• details facilitating request for access to a record etc.

Most of us get to a point in our lives where we really do not know how to go any further and we need to be rescued from the dead end we have reached. This need to be rescued does not only exist in our family life- when faced with divorce or when our children parents or friends  desert us , but our business and economic life.

The word rescue means “to prevent something from being discarded, rejected, or put out of operation” and suggests that that thing be saved and once again resume its position in one’s life. The question that must be asked is whether it should be saved, if so can it be saved and only then how it should be saved.

COMPANY RESCUE

What is company Rescue?

Before the inception of the “new” Companies Act the only procedure to “rescue” a company in dire financial straits was to place the company under Judicial Management. This process had certain restraints, which excluded it as an option for most legal entities.

Companies, as well as close corporations, which are now deemed private companies, can now be placed under “Company Rescue”.

Business Rescue is intended to do for companies, what debt counselling is doing for individuals, namely to obtain the protection of the law, and effectively obtaining a moratorium period, in which to pay creditors in a structured way, without the threat of legal action, or the loss of assets.

As was applicable to Judicial Management, an application is made to court, in an effort to obtain a Business Rescue Order.

A Business Rescue Practitioner is then appointed to manage the company, while paying off the existing debt.

Once an order has been granted, no creditor can enforce his rights through the legal process, subject to certain conditions.

The Business Rescue Order can be uplifted, once the company has regained its financial independence.