EXPLORE COMPANY LIQUIDATION IN SOUTH AFRICA 

Exploring the process of company liquidation in South Africa can be quite overwhelming, but we are here to assist you in navigating it smoothly and without any unnecessary anxiety.

Going through with the company in South Africa can feel overwhelming, with many variables to consider. With a dedicated team of professionals by your side, you can rest assured that you will receive the necessary assistance to navigate the liquidation process in South Africa successfully.

Are distressed businesses in South Africa able to opt for company liquidation?
Of course! There are several ways to accomplish this. South Africa offers distressed businesses a few formal processes to consider, namely compulsory and voluntary liquidation.

When might a business consider liquidation as a viable solution?

With Cure Debt, you'll discover everything you need to navigate company liquidation in South Africa. We are the best, and for very good reason. We are here to assist you with our team of experts, who are available to address your concerns promptly and with the utmost professionalism. Assisting you in launching a life free from debt.

Is company liquidation a viable option?
The process for placing a business under liquidation is fairly straightforward.
1.
If the company is unable to pay the bills on time. 
2.
If it seems likely that the company won't be able to meet its obligations in the next few months, the board of directors can decide to liquidate the company. 
3.
The company itself, a creditor, or a shareholder can submit an application to the court for company liquidation.

The business is finally liquidated. What happens next?
In a nutshell:
1.
The business concludes its operations, deregisters, and ceases to exist as an entity.
2.
Directors will no longer be involved in the company.
3.
Staff members will inevitably be let go.

Assets in the business are sold to cover the costs of the winding-up process and to reimburse the various claimants, including, but not limited to, creditors, employees, and shareholders.

Can a company continue trading while going through the liquidation process in South Africa?
Once the liquidation process commences, the business is required to stop trading. Unless it is necessary to carry on trading for the benefit of all creditors. 

Trading can only resume with the approval of the court or the consent of the creditors and shareholders. The entity's final day of trading is determined, after which the entity stops trading.

What will happen to the assets in the Liquidated Company?
All assets in the company are frozen, and there're strict rules and regulations on disposing of assets.

Directors and shareholders concealed assets from the liquidator(s). What is the implication of this action?
Concealing assets is a serious offence, and individuals who assist in hiding assets from the liquidator can face legal repercussions, including imprisonment.

Which process is followed when dealing with creditors and legal action?
If you happen to be a creditor, it's worth noting that you won't have the option to sue the liquidated company. All legal processes against the business are stayed during the liquidation proceedings. 

Any judgement and execution orders issued during this time cannot be enforced. The creditors are informed, and the process of winding up begins.

There is still money remaining in the business bank accounts, and funds are available, even after selling the assets. What's going to happen to the money?
After the entity has been wound up and the liquidation and distribution account has been lodged and confirmed, the liquidator will allocate any available funds for distribution. When a creditor is required to contribute due to insufficient assets to cover the liquidation expenses, they must pay the contribution.

The Company's Affairs are finalised.  What to expect next?
After all the company's affairs have been finalised, the Master of the high court sends a certificate to the Companies and Intellectual Property Commission (CIPC), along with an extra copy for the liquidator.  This certificate serves as confirmation that the liquidation has been finalised and the file is closed. 

CIPC keeps a record of the company's dissolution, which means that the entity is deregistered with CIPC and no longer exists.

How will creditors be prioritised for payment?
1.
Secured creditors are individuals or entities that have collateral to support their claims in different forms. They are prioritised for payment.
2.
Preferent creditors are ranked second and are creditors who do not have specific security for their claims but have a higher priority than concurrent creditors.  

Staff compensation is one example of a creditor in this category. 

Concurrent creditors are ranked third in order. Concurrent creditors receive payment from the remaining proceeds of unencumbered assets once preferent creditors have been fully paid. 

Shareholders are also considered creditors and are typically paid after other creditors have been satisfied.

Cure Debt has an accomplished group of insolvency and restructuring experts who are here to provide knowledgeable advice and assistance.  

This requires imparting strategic counsel to creditors regarding the optimal course of action. Our team of experts promise to provide excellent service and guarantee that your financial concerns are addressed with the care and skill it deserves. 

We understand the challenges you are facing, and we are committed to guiding you towards the best possible outcome. Let us handle the complicated details so you can have peace of mind.

What's the Company's Act stance on this?  Do I, as Director and owner have any say in this?

As a member of a close corporation or a director of a corporation, it is important to fulfil your legal obligation of liquidating your company.  If you foresee any difficulties in servicing your monthly obligations within the next few months.

It's important to remember that not complying with this requirement is considered a criminal offence.  Feel free to reach out to us for expert advice and assistance. Let us assist you in regaining your financial freedom.

Why choose to cure debt?
Dealing with the company liquidation process in South Africa can be quite overwhelming if you attempt to handle it by yourself. 

You will benefit by having a professional team of insolvency professionals by your side, which will reduce the stress of the process.  This will ensure that the process is dealt with swiftly and professionally without any unnecessary delays. 

Still undecided if the reasons provided to substantiate that CUREDEBT is the top debt help professional in South Africa? Please call us. You can decide for yourself if our promises that we care about you and want to help you get out of debt and start living again are true or not.

Call Cure Debt and talk to one of our Debt Relief Specialists, Find the Debt Relief you need from the best debt relief specialists in South Africa.

We are concerned about your well-being and the impact this process will have on you. We understand that if you decide not to continue with the process, we will lose money. 

But for us, it is not about the money. We are passionate about helping people regain their financial freedom and live a debt-free life. To help you start living again. 

To better serve our clients, we collaborated with a group of professionals who specialise in different fields. With over a century of experience between them, we can boldly state, "We are the best in the business of helping people and businesses. Become debt-free. 

Debt Review | Debt Counselling | Debt Mediation & Restructuring | Cancellation of the Debt Review | Sequestration | Rehabilitation | Liquidation | Credit Clearance of Credit Score | Business Rescue, etc.