As I reflect on this year: whilst it’s been a bit of a press, play and repeat of 2020, there have been some glimpses of recovery, accomplishment and collaboration that bode well for the future, along with more than a few moments to smile about, albeit undetected from behind your mask.
The reality is Covid has wreaked havoc on corporate South Africa, placing many companies in financial distress and creating near-unreconcilable disputes between shareholders. However, since the implementation of the Companies Act in 2011, business rescue has proven to be a more popular course of action over liquidation to assist or rehabilitate businesses. Furthermore, the introduction of Rule 41A of the Uniform Rules of Court, which makes it a mandatory requirement for litigants to consider mediation before litigation, has also produced significant results and successes in short time frames, saving many a business and relationship, at a fraction of the cost of litigation.
The law of win/win says: ‘Let’s not do it your way or my way; let’s do it the best way.’ As dispute resolution specialists it is incumbent on us, under the right circumstances to recommend mediation first over litigation to facilitate an orderly settlement discussion between warring shareholders. Although this year has been challenging for countless businesses and industries, many of our clients have benefited from our advice with swift, positive, affordable outcomes that have not only salvaged their businesses but have improved communications, shareholder relationships and most importantly saved jobs.
It really is the best way.
I have shared some articles and blogs below that may be of interest to you – trust me, you’ll want to consider alternative dispute resolution when the going gets tough.
Wishing you and yours a wonderful Festive Season.
Yours in law
PJ
PS: In lieu of Christmas gifts this year we will be making a donation to my favourite shelter, PitPals who rescue, re-habilitate and re-home Pitbulls.
A tale of two matters
If this doesn’t make you consider the benefits of commercial mediation, nothing will.
Business rescue – more pros than cons, but for whom?
Any outcome that avoids liquidation is a success.
Is your Social & Ethics Committee obligated by Rule 41A?
In monitoring and responsibly conducting business in the five areas of social responsibility, the SEC should also take into consideration any relevant legislation and other legal requirements.