News24 reported that Unions demand ‘meaningful engagement’ on SAA business rescue, or it’s back to court.
The unions are relying on the COMPANIES ACT 71 OF 2008 to demand “meaningful engagement”.
The companies act states the following section 144 part 3 d:
During a company’s business rescue process, every registered trade union representing any employees of the company, and any employee who is not so represented, is entitled to be consulted by the practitioner during the development of the business rescue plan, and afforded sufficient opportunity to review any such plan and prepare a submission.
Does the emphasis on “meaningful engagement” mean that there was engagement or not? Nevertheless, there is a clear indication that the unions are of the opinion that they will not be able to review and submit their view of the rescue plant before the shareholder approves the business rescue plan, as they are entitled to.