SCA settles who gets a vote when a company is in business rescue
Mashwayi Projects (Pty) Ltd and Others v Wescoal Mining (Pty) Ltd and Others — Supreme Court of Appeal · (1157/2023) [2025] ZASCA 5
What happened
The dispute was whether post-commencement creditors — those who extend credit to a company after it enters business rescue — have voting rights on the business rescue plan under Chapter 6 of the Companies Act. The SCA overturned the Gauteng High Court and held there is no basis to limit plan voting rights to pre-commencement creditors only.
Why it made the news
A significant precedent for insolvency and restructuring practice, closely tracked by corporate law commentators.
For lawyers & law students
Confirms a unitary reading of Chapter 6: post-commencement creditors have voting rights equal to pre-commencement creditors on a business rescue plan. Directly relevant when advising lenders on the risk profile of extending credit to a company already in rescue.
For citizens
Mainly matters to businesses and lenders — it reassures anyone extending credit to a company that's already in financial trouble that they'll have a real say in how the rescue plan is decided.