Please note: We can bring a Liquidation Application in any Province, Town or City in South Africa. For the purposes of this explanation we are referring to companies based in Midrand. Go to the menu to view information on Liquidations in other Provinces, Towns and Cities in South Africa.
When a Company 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 attorneys have the track record and expertise to take the necessary steps to minimise damage and to try and keep compulsory insolvency proceedings at bay. For a detailed explanation of the Liquidation Process please proceed to the following page: Liquidation Process
If you are a Company Director who wishes to shut down your business in Midrand (also called winding up), or is being forced into that situation by Creditors, then you’ll need to understand your options. Entering Company Liquidation means your Company will cease to trade, your staff will be made redundant, and the Company itself will cease to exist as a legal entity. As a Director, your powers will cease, and you’ll no longer be able to access business bank accounts. If you’re Insolvent, a licensed Insolvency Practitioner will organise the Liquidation of Corporate Assets, and the proceeds are then distributed to the Company’s claimants to repay debts.
A Creditors’ Voluntary Liquidation can be used by Insolvent Companies and is initiated by a Shareholders’ resolution. This involves the dissolution of the Insolvent Company and the redistribution of any assets to the Creditors - if applicable. This procedure enables Directors to write off unsecured business debts that are not personally guaranteed. See our services for Sequestration of debts that are personally guaranteed.
A Members’ Voluntary Liquidation is the appropriate way to Liquidate a Solvent Company and can be used as part of an exit strategy. A Solvent Liquidation may be considered if you have a Company that you want to close as part of your business plan and to reduce taxation. Your Company may have outlived its purpose and be heading towards a natural end of trading, or you may wish to extract the value of cash and assets from the Company in a tax efficient manner.
Compulsory Liquidation is usually initiated by a Creditor that is looking to force a business that cannot pay its debts into closure via a Court ordered application. This procedure is often used to wind up the business as a last resort by Creditors after failed negotiations over missed payments. This is not a voluntary process for Directors. Failure to cooperate with the appointed Liquidator in a Compulsory Liquidation can have serious repercussions. It is best to apply for Voluntary Liquidation before a Creditor proceeds with a Compulsory Liquidation.
Liquidation or the winding-up of a Company in Midrand is a relatively simple process that involves the realisation of a Company’s assets in order to pay the costs and expenses incurred in the winding-up process. Funds remaining after costs and expenses, are distributed to Creditors in their prescribed order of preference and according to the Creditors’ rights and interests in the Company.
When the affairs of the Company have been completely wound-up, the Master of the Court transmits a certificate to this effect to CIPC and a copy to the Liquidator. The CIPC records the dissolution of the Company and publishes a notice to this effect in the Government Gazette.
For a detailed explanation of the Liquidation Process please "click" you can proceed to the following page: Liquidation Process
An appointed and licensed Liquidator is required for the Liquidation of a Company 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.
Responsibilities include, but are not limited to:
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Creating a Statement of Affairs document for the Creditors,
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Distributing the realised assets and surplus funds to the appropriate parties - if applicable.
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Determining any outstanding claims against the business and satisfy those claims in order of priority set by law.
There are three distinct types of Creditors:
1. Secured Creditors are Creditors holding security for their claims in the form of:
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A special mortgage,
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Landlord’s tacit hypothec - the landlord has a right, established by law, over moveable property belonging to the person who fails to pay rent. “Tacit” means that this right is implied and does not have to form part of a written contract.
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Pledge or right of retention.
2. Preferential Creditors do not hold specific security for their claims in liquidation, but rank above concurrent Creditors. This includes Employees’ remuneration (up to a prescribed amount) and SARS.
3 Concurrent Creditors are paid from any proceeds of unencumbered assets that remain after preferential Creditors have been paid in full. They are paid in proportion to the amounts owing to them.
Basic Costs to Liquidate a Company
Please note that the fees below can be paid off over a negotiated term.
1. Assessment - R0.00.
We will discuss next steps and provide a detailed explanation of the process as well as the costs.
2. Business Liquidations from R15,000.00. Based on various factors like Annual Turnover / Annual Return Filings / Outstanding Creditors/ Assets in the business/ Employee issues / SARS penalties.
3. For companies that are not currently compliant, we have add on services to restore compliancy. This must be attended to first before the Liquidation can proceed successfully.
4. When a Director signs personal surety for Business debt, the Director becomes personally responsible for that Business debt. We will discuss an additional solution that can write off between 60-75% of that debt. You only pay back 25-40% of the debt owing. This is called Voluntary Surrender or Voluntary Sequestration.
Tell Us About Your Company
If you are facing the complexities of financial stress in your business, you can’t afford to do without the clear thinking of a legal expert.
Whether the winding up is voluntary or compulsory, you’ll benefit from our calm professionalism and track record.
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Consultation & Assessment Tailored for Your Situation
We discuss your needs in detail offering the best solution possible. An assessment will be provided to you explaining the process.
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Assign you to a Dedicated Legal Practitioner
We render trusted legal services by legal experts at the highest ethical standards ensuring the best possible outcomes and successes.
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We Will Guide You Throughout The Process
From the moment you start, we will guide you through the process, explain what we are doing and answer any questions you may have
