DotCom Limited is currently experiencing serious fi nancial diffi culties and the directors have realised that the company will not be able to pay its debts during the next few months. As DotCom Limited should be able to recover its fi nancial stability within the short term, its advisors have informed the directors of DotCom Limited that the company may apply for corporate recovery in terms of the Companies Act, 1995.Required:

(a) Explain to the directors of DotCom Limited what procedure should be followed for the company to apply for corporate recovery in terms of the Companies Act, 1995; and (5 marks)