Business rescue practitioner vs turnaround advisor in South Africa
CJ Dicks · South Africa · Business rescue
The distinction matters. A business rescue practitioner holds a formal statutory role. A turnaround advisor supports the commercial judgement around whether and how the business should stabilise.
A business rescue practitioner is appointed inside a formal Chapter 6 process under the Companies Act. The practitioner has defined powers and responsibilities and supervises the rescue process once proceedings begin.
A turnaround advisor can be useful before, during or around that process, but should not be confused with the statutory practitioner unless formally appointed and licensed for that role.
For founders and boards, the practical question is often whether formal rescue is the right move at all. That assessment requires clear thinking about viability, creditor position, operational reality and the cost of delay.
Sources and context
- Companies Act 71 of 2008
- CIPC business rescue information
- IoDSA King IV Report