All aboard for rescue plan SAA?
The Government has relinquished all control of South African Airways with its decision to place it under voluntary business rescue.
SAA's business rescue practitioner has full management control of the company in substitution for its board and pre-existing management.
Tough measures have been instituted, such as massive cuts to local and international routes.
Does this really mean that SAA will be depoliticised - and that government and unions will stay off its back?
Once a business rescue is commenced with, full management control of the business is handed over to the business rescue practitioners.
One has to get away from the fact that shareholders don't run companies boards of directors run companies.
Well it may be that a board wishes or a business rescue practitioner in this case wishes to consult with various stakeholders like the shareholder in this case - he would not be duty bound to do so.
So yes, for the department of public enterprises to assume that it does have some kind of control would be misplaced.PJ Veldhuizen, Gillan and Veldhuizen Inc.
I'm not sure that the government has said that they were going to review a decision of the business rescue practitioner. I think they are simply asking the practitioner to think again.PJ Veldhuizen, Gillan and Veldhuizen
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This article first appeared on CapeTalk : All aboard for rescue plan SAA?
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