Wind Up Wind Down

Liquidation does not automatically cancel personal surety, but it does not necessarily mean you will personally pay the full company debt. Assets, recoverable debtors and creditor ranking can affect what remains owing.

f your company cannot pay SARS, the right solution depends on whether the problem is temporary or the business has become insolvent. Understand the options available before the debt becomes more difficult to resolve.

What happens to personal assets during business liquidation in South Africa? Personal assets do not automatically form part of a company’s liquidation. However, if you signed personal surety and company assets cannot settle the debt, you may be personally liable for the shortfall.

When a company or a close corporation in South Africa undergoes liquidation, the South African Revenue Service must be involved for tax purposes. In this scenario, the liquidator also acts as the representative taxpayer on behalf of the company. In this article, we understand the major role SARS plays in the company or CC liquidation process in South Africa.

Another company in South Africa goes into Liquidation. Retailer Drip Footwear has entered liquidation, with employees laid off this week.