An appointed and licensed Liquidator is required for Business Liquidation and they have several duties in their position. After their appointment, these experienced professionals have the responsibility to act as an impartial third-party to oversee the process from beginning to end.
The role of a Liquidator encompasses various responsibilities which include, but are not limited to:
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Creating a Statement of Affairs document for the Creditors, with the assistance of Directors. This is a financial statement explaining the business’ position in some detail.
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Distributing the realised assets and surplus funds to the appropriate parties.
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Determine any outstanding claims against the business and satisfy those claims in order of priority set by law.
Getting Good Advice
For any Business faced with the prospects of Business Liquidation, it is vitally important to be fully aware of all the options available and to get advice from experts in the field.
What is needed, before any decision can be made with regards this subject, is clear and impartial guidance.
This is where Solvendi can help. Call us directly to find out more or to book a free consultation before making any life changing decisions.
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.