1.Can’t afford the legal advice – Legalwise and others claim to help persons in need of legal help yet when you approach them you are told it is only if you are an employee or domestic issue and that they only write letters (even though you are able to buy various packages which claim to offer legal representation insurance). There is no court you can appeal to. Heathcliff House which is a small business with a turnover of under 2 million has had an issue for years of a tenants who uses their service and then refuse to pay despite their having good earnings which they squander on alcohol, parties and other frivolous activities. This has led to the property of the company becoming derelict and the company facing closure. The business has not grown and in looking for legal assistance failed as they cannot afford legal representation which is required by the only court they can appeal to. The loss to the company is R12 000.00 and the owner lives on less than R20 a day.
2.The wrong people are appointed with the duty of trying to rescue the business. It is not legal or auditors who should be in control but a separate entity consisting of a mix seasoned entrepreneurs working with them. Included in this mix should be university master graduates who have specialised in that area. This would give both the mix and the business a better understanding of the issue and a think tank which can grow the affected business and off springs. Legal persons and auditors only concern is to hold the purse strings shut.
a.This can be demonstrated in the Eskom Annual Return of 2017 where the AGM could not be held due to the auditors refusing to allow an amount of money to be set aside in order to hold a party for the guests of the entity. Heather Malcomess was sent to attend the AGM on the set date but was turned away. Being a journalist she followed through by demanding to see various people until she had the true reason.
b.The following day she attended a Power seminar at Sandton Convention Centre where Eskom was punted to be a leading sponsor. Foreign dignitaries, Eskom employees and guest stood around from 8am to 10am without being offered breakfast or even a cup of tea/coffee despite food being on the tables. Guards were posted to turn people away from the tables. At 10am Heather realised there was a serious problem when the keynote speaker was by passed. She then went to see the punted media company as she knew them to be of British/USA origin. Her idea was to get the show started but could not undertake it herself as the cost was way out of her budget.
c.Penwell came to the rescue. They removed branding and ushered everyone into the hall to hear the speakers. They then kept guests entertained and informed during the day and away from the food. There was plenty laid on around the venue by the various stall holders. The evening finished with a cocktail party and all was good.
d.The next day an announcement was made that the Eskom AGM would go ahead as scheduled. During the day Eskom also presented at the seminar and promissory notes were signed so business could go on. (Taking a flying guess I would say the party was paid for by Penwell/the seminar – a hearty thanks to all)
e.This serves to show that Business Rescue is not about finance only but also about the right action being taken at the right time.
3.The language of business is far above the understanding of those trying to carry out business in South Africa. Words are used which require a dictionary or a smart phone to look up. Terms are confusing.
4.Promises are not carried out of speeches and papers being made available to attendees to conferences and seminars.