Business Rescue Practitioners: Licence Suspension and Revocation Grounds Gazetted

Posted 12 June 2026 Written by Acts Online
Category Trade

Brought to you by SA Legal Academy: The Department of Trade, Industry and Competition, acting on behalf of the Companies and Intellectual Property Commission (CIPC), has gazetted a notice prescribing the grounds and procedures for the suspension or revocation of a business rescue practitioner’s licence.

In terms of Chapter 6 of the Companies Act, No. 71 of 2008, and specifically the regulatory oversight of business rescue practitioners under section 138, the new directive aims to curtail the abuse of the business rescue process and protect entities in financial distress. The notice establishes formal administrative mechanisms to hold practitioners accountable for non-compliance, ethical breaches, or performance failures.

The gazetted framework distinguishes between the suspension and revocation of licences, introducing specific procedural pathways for each action:

  • Licence Suspension: Where a practitioner’s licence is suspended, the CIPC is empowered to impose mandatory corrective measures that the practitioner must satisfy within a specified timeframe to lift the suspension.
  • Licence Revocation: In cases where a licence is revoked, the notice details strict timeframes, consequences, and the formal re-application procedures that must be followed if the individual seeks relicensing in the future.

What this means for you, your business, or your clients

  • For yourself: If you practice as a licensed business rescue practitioner, you must review the newly gazetted grounds for suspension and revocation to ensure your current appointments and administrative practices comply with these standards.
  • For your business: Professional firms offering business rescue services must update their internal risk management and compliance frameworks to monitor practitioner conduct against the gazetted criteria, mitigating the risk of sudden licence suspension.
  • For your clients: Distressed corporate clients undergoing or considering business rescue can expect greater regulatory oversight of appointed practitioners, providing recourse options if a practitioner abuses the process or fails to execute their statutory duties.

Originally published at https://legalacademy.co.za/news/read/business-rescue-practitioners-licence-suspension-revocation-grounds-gazetted

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