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INSOLVENCY AND BUSINESS TURN-AROUND SPECIALISTS

INSOLVENCY AND BUSINESS TURN-AROUND SPECIALISTS

010 286 1966 | [email protected]

Voluntary Liquidation Process

explained and defined

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

5+ star Google review

Voluntary Liquidation Process

Explained

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

5+ star Google review
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VOLUNTARY LIQUIDATION PROCESS in South Africa

The Voluntary Liquidation Process refers to a wind-up of companies and close corporations, where the Directors of a company or members of a close corporation, resolve on behalf of the creditors to liquidate the company or close corporation by special resolution.

If your company is in debt, with no means to pay its creditors as they become due, owing and payable, there is an obligation on you to either liquidate the company or place it under business rescue. The Voluntary Liquidation Process can either be done through CIPC (Companies & Intellectual Property Commission) or through the High Courts of South Africa.

Liquidation Attorneys Logo

VOLUNTARY LIQUIDATION PROCESS in South Africa

The Voluntary Liquidation Process refers to a wind-up of companies and close corporations, where the Directors of a company or Members of a close corporation, resolve on behalf of the creditors to liquidate the company or close corporation by special resolution. If your company is in debt, with no means to pay it’s creditors as they become due, owing and payable, there is an obligation on you to either liquidate the company or place it under business rescue. The Voluntary Liquidation Process can either be done through CIPC (Companies & Intellectual Property Commission) or through the High Courts of South Africa.

What to expect

In short, the voluntary liquidation process includes an appointment of a liquidator, who then sells all the assets of the company and deposits the return into an estate bank account.

What to expect

In short, the voluntary liquidation process includes an appointment of a liquidator, who then sells all the assets of the company and deposits the return into an estate bank account.

Who is the liquidator and what is expected form him/her?

The liquidator must draw up a liquidation and distribution account (L&D Account) and must assist the creditors to prove claims against the insolvent estate. Creditors are divided into 3 categories known as, secured, statutory preferent and concurrent creditors. The secured creditors (bond holders) and statutory preferent creditors (SARS and employees) have a preferent claim against the realized value of the assets in the estate. The concurrent creditors stand last in line and share pro-rata in the remainder of the so called “free-residue assets” of the estate. Should all creditors have been satisfied in full, the surplus funds will be distributed to the share holders.

Who is the liquidator and what is expected form him/her?

The liquidator must draw up a liquidation and distribution account (L&D Account) and must assist the creditors to prove claims against the insolvent estate. Creditors are divided into 3 categories known as, secured, statutory preferent and concurrent creditors.

The secured creditors (bond holders) and statutory preferent creditors (SARS and employees) have a preferent claim against the realized value of the assets in the estate.

The concurrent creditors stand last in line and share pro-rata in the remainder of the so called “free-residue assets” of the estate. Should all creditors have been satisfied in full, the surplus funds will be distributed to the share holders.

We handle the whole liquidation process for you

People have different needs, and so do businesses. We have helped thousands of companies through the Liquidation process ensuring that you can survive and thrive. Liquidation Attorneys are experts in business insolvency and restructuring. We can help you with the practical, legal and financial advice you need to get your business back on track.

We handle the whole liquidation process for you

People have different needs, and so do businesses. We have helped thousands of companies through the Liquidation process ensuring that you can survive and thrive. Liquidation Attorneys are experts in business insolvency and restructuring. We can help you with the practical, legal and financial advice you need to get your business back on track.

want to know more about Liquidation?

Liquidation Attorneys has been involved with some of the biggest liquidations in the country. Liquidations are highly specialized and we trust we will have the expertise to assist you.

want to know more about Liquidation?

Liquidation Attorneys has been involved with some of the biggest liquidations in the country. Liquidations are highly specialized and we trust we will have the expertise to assist you.