The Launch Steering Group For The Formation Of The SA Chapter of the TMA held its first meeting on 17th May 2004.
Under its original name, it completed all the preliminary work and negotiations with the Turnaround Management Association to establish a SA chapter.
The Department of Justice believed that business rescue should be regulated. The Work Group, in turn, believed that business rescue should be regulated by industry with government's blessing.
When the issue of regulation was raised, the TMA, however, informed the Work Group that it does not allow its chapters to regulate due to perceived possible conflicts of interest amongst constituencies and the resultant divisive effect.
Instead, the TMA recommended that industry establish a regulatory body in parallel.
At the time, interim new business rescue legislation was expected to be implemented soon. Accordingly, establishment of a regulatory body was regarded to be industry's priority above all other activities.
The Work Group on 29th June 2004 therefore recommended and received approval from the Advisory Group, to:
ABARP membership would be a prerequisite to belong to the Turnaround Panel, from which, in terms of the new business rescue legislation, turnaround practitioners will be drawn to act as administrators of distressed companies that can be turned around.
TASA would function across the informal sector - i.e. outside of the legislative framework, including management-led correction and informal creditor workouts.
TASA would also function across the formal sector - i.e. within the legislative framework, including 1) statutory/legislative turnarounds, more commonly known as business rescue, as provided for by the imminent interim new business rescue legislation, and 2) liquidation.
It was believed that TASA could be formed much quicker than the TMA, since it avoided including all the TMA by-laws and going through the whole affiliation process. The existence of TASA would be beneficial in forming ABARP. Once ABARP and TASA have been established, the Work Group would once again address the issue of affiliating TASA with the TMA.
At its meeting on 30th August 2004, the Work Group decided to adopt the name ABASA - Association of Business Administrators of South Africa to closely align the name with the Business Administration Act.
At its meeting on 20th September 2004, the Work Group decided to establish the Turnaround Management Association - South Africa Chapter, South Africa Chapter instead of TASA.
Should you become a member of ABASA or or TMA or both?
To make this decision, please see ABASA and TMA-SA.
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