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hard copy files, will only be subject to the provisions of POPI in the event
that such personal information forms, or is intended to form, part of a
filing system. Consequently, in the event that personal information is
stored in hard copy format, which does not form part, or is not intended
to form part, of a filing system, such processing activity will not fall within
the ambit of POPI.

The processing of personal information is thus an ongoing process
which requires compliance with the provisions of POPI for as long as
a person or organisation is in possession of such personal information.
The application of POPI is very broad and will apply to most persons
and organisations who (or which) are in possession of the personal Commercial
information of others.
In your situation, the fact that your information is in hard copy format,
does not exclude POPI from applying to you. In addition, the fact
that you retain your client’s information in physical files will qualify as
processing personal information and will thereby also fall under POPI.
To comply with the requirements of POPI we would advise that you
enlist the help of a specialist to assist you in identifying the necessary
measures to implement to ensure that you are compliant.
Liquidation or business rescue - what is the
difference?

Maureen Odendaal
July 2017

“My family company has been operating successfully for nearly
20 years. Over time I’ve also managed to get a few investors
into the business. The last year however has been tough and
we are struggling to make ends meet. I feel its decision time
about the future of the business, but was wondering whether
liquidation is the best route or must I rather look at business
rescue? What is the difference between these two options?”

In difficult economic times, many companies are having to come
to terms with making tough financial decisions. Filing for liquidation,
has in the past been a route considered by many companies. The
Companies Act 71 of 2008 (“Companies Act”), introduced another
intervention mechanism, namely business rescue, as an option to be
considered by a company that is in financial distress.
In terms of the Companies Act, a company will be considered to be in
financial distress, if the company is not in a position to reasonably pay

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