Wind Up Wind Down

When a company in South Africa reaches the end of its operational life, it may consider ceasing its activities. Companies may either consider deregistration with the CIPC or liquidation via a court order. While both result in the company being removed from the official register, they differ significantly in purpose, procedure, and financial implications. In this article, we understand the difference between company deregistration and company liquidation in South Africa.

Approximately 12 million adults in South Africa struggle with unmanageable debt, according to the Finmark Trust. One legal solution that often comes up in this context is Sequestration, a process in which an individual voluntarily applies to be declared insolvent by a court. The court then appoints a trustee to manage and distribute the insolvent party's assets to its creditors. But the big question remains: Is sequestration a good idea in South Africa? In this article, we ex