Business rescue resolution: Is non-compliance with the Companies Act only relevant if the resolution is challenged?

The South Gauteng High Court in NTC Global Trade Fund (Pty) Ltd and Another v Letopa and Others (2025/102392) considered the issue of validity of business rescue proceedings initiated by NTC Global Trade Fund (Pty) Ltd (NTC) while there were pending liquidation proceedings.
This case may open the door for the adoption of resolutions placing a company in business rescue even though there are liquidation proceedings pending in respect of that company, as it appears that the resolution will be valid until it is set aside.
If left unchallenged, the effect of this judgment will present practical difficulties for creditors that would undoubtedly be frustrated by companies adopting resolutions placing companies in business…