When a Business runs into financial difficulties events can move alarmingly fast. This is why you’ll need the expertise of a legal team that can respond quickly and think on its feet. A team that can navigate you through the storm. Solvendi’s insolvency Practioners have the track record and expertise to take the necessary steps to minimise damage and to keep compulsory insolvency proceedings at bay.
What would you like to know?
If you are a Company Director who wishes to shut down your business (also called winding up), or is being forced into that situation by Creditors, then you’ll need to understand your options.
There are 3 types of business liquidation;
1. Creditors' Voluntary Liquidation - for companies with debts; 2. Members' Voluntary Liquidation - for companies with no debts; 3. Compulsory Liquidation.
The process in which a company voluntarily proceeds to declare itself insolvent or where a Creditor of the Company brings an application to court to have the company declared insolvent.
An appointed Liquidator has several duties. After their appointment, these experienced professionals have the responsibility to act as an impartial third-party to oversee the process from beginning to end.
In a Business Liquidation process Creditors receive proceeds in line with how they are ranked. There are 3 distinct types of Creditors.
1 Secured Creditors. 2 Preferential Creditors. 3 Concurrent Creditors.
There is a basic cost for compliant companies of R15,000. Various factors must also be considered before Liquidation can occur successfully. Costs will vary based on these factors and the situation of the business.