Liquidation is the process by which a company or close corporation effectively declares itself insolvent. Under South African law a company or close corporations have a few options to deal with over indebtedness of which, voluntary liquidation, voluntary distribution and forced liquidation form part thereof.
Voluntary liquidation however is a court application brought in the high court of South Africa or via CIPC
At the end of the liquidation process the company ceases to exist. The purpose of liquidation is to ensure that the company’s affairs with relation to contracts, employees, legal disputes, assets and liabilities and fund distribution to its creditors, have been dealt with legally and appropriately. During voluntary liquidation the company places its affairs under the control of a liquidator who is charged with realizing its assets and divide the proceeds amongst its creditors according to the stipulations in the Companies Act.
Sequestration is the voluntary surrendering of your estate (personal financial affairs) to the High Court under the governance of the Insolvency Act 24 of 1936.
It is an application brought in the High Court of South African, by an attorney in cooperation with an advocate or by voluntary surrender through CIPC on behalf of the debtor which ultimately allows the debtor (the applicant) to write of 80% of his debt as a final resort to escape insurmountable debt accrued through circumstance beyond his/her control.
Sequestration is thus the process by which a debtor who has become insolvent (someone who’s financial liabilities exceeds that of his/her assets) can obtain the legal status of Insolvent in order to enjoy the benefits of the status. The debtor is relieved from further obligation to pay his/her creditors as stipulated by the original creditor’s agreement, and the creditor’s agreement and claims are brought to a close once they have received their benefit from the insolvent estate.
We have a good track record in terms of Business Rescue and are accredited as senior Business Rescue Practitioners. We are capable of handling multiple Business Rescues simultaneously including the administration and management of the business under rescue. Our staff are highly competent and capable in this aspect of our business. We ensure total commitment to our clients, to ensure we do our best at a time when they need us the most.
Our Services include:
- Drafting resolutions
- Formal High Court Applications
- Submissions to CIPC
- Convening Creditors Meetings
- Compilation of Comprehensive Business Rescue Plan
- Background Information to the Company
- All the accounting aspects of the process
- Feed back to necessary Participants of the process
- Last will & testament
- Deceased estates
- Rescission of judgment
A trust is a legal arrangement whereby control over property is transferred to a person or organisation (the trustee) for the benefit of someone else (the beneficiary). You can register various types of trusts, namely the inter-vivos trust, testamentary trust and special trusts.