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INSOLVENCY AND BUSINESS TURN-AROUND SPECIALISTS

INSOLVENCY AND BUSINESS TURN-AROUND SPECIALISTS

010 286 1966 | [email protected]

Voluntary Liquidation

Before you liquidate

Voluntary Liquidation advice from one of South Africa’s leading Insolvency attorneys.

5+ star Google review

Voluntary Liquidation

Before you liquidate

Voluntary Liquidation advice from one of South Africa’s leading Insolvency attorneys.

5+ star Google review
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What is Liquidation?

Liquidation is a process where you close a business. Voluntary liquidation can be considered when a company is in serious financial trouble, and can no longer pay its creditors. Liquidation can be initiated by the company’s board of directors or by an application to the court. A company can also apply for liquidation via CIPC to dissolve the company.

Questions you need answered

WHO can APPLY FOR LIQUIDATION?

Anyone can

Anyone who has a claim in the company may apply for liquidation. Members mainly consist of creditors, and employees, and shareholders. There are further classes of interested parties for example investors in pyramid schemes etc.

WILL I BE LIABLE FOR THE DEBTS OF MY COMPANY BECAUSE I AM THE DIRECTOR or a MEMBER?

No. But where is the catch?

You will only be liable for debts if you have signed a surety. If you have acted fraudulently or grossly negligent, and the applicant can be brought against you in terms whereof the company veil be lifted you will be liable in person for all the company’s debt. The jackpot question is thus whether you have signed surety.

WHY DON’T I SIMPLY WAIT FOR MY COMPANY’S CREDITORS TO LIQUIDATE ME?

Creditors can apply for a Hostile Liquidation process

Hostile Liquidation refers to a creditor (or any other hostile party) applying for the liquidation of a company or close corporation. If a company can not pay its creditors, the creditor can send the company a demand for payment in terms of section 345(1)(a)(i) of the companies act. Should the company not adhere to the demand for payment, the creditor obtains the legal right to bring an application for the hostile liquidation of the company.

We do not recommend waiting!!! Contact us.

BEFORE YOU DECIDE to liquidate

Though liquidation might seem like a scary process, it’s important to know what’s involved and what the implications are. We’ve dealt with over 2300+ insolvency cases and we’ve succeeded in passing 99.85% of all the applications we were appointed to. If you’re considering liquidating a company, be sure to ask the right questions and educate yourself on the implications. To get the right answers to your Questions read our FAQ’S

IS YOUR COMPANY IN DEBT?

Fill in the form and get a free consultation. Voluntary Liquidation is not the end. Know your options contact us today.