Smart Consulting (Pty) Limited is in financial difficulty and is unable to pay its debts. Mr Jones, one

of the company's largest shareholders, is convinced that the company can still be salvaged and

approaches you for advice.

Q.5.1 Assume for this question only that it has been established that there is no

clear prospect of Smart Consulting (Pty) Limited being restored to solvency,

but business rescue proceedings will result in a better return for the company's creditors. Discuss, with reference to authority, whether the court

will grant a business rescue order in this instance. (15)

Q5.2 Suppose for this question only that the business rescue practitioner has

determined that Smart Consulting (Pty) Limited cannot be rescued. The

court may wind up Smart Consulting (Pty) Limited if there are just and

equitable grounds that the company should be wound up.

Name five instances in which the courts have held that it is just and equitable

to wind up a company.(10)