If you need to close your company down fast, we can help.
Our team of insolvency professionals can Liquidate your company quickly, so you can move on without the financial issues.
At Francois Uys Incorporated Attorneys we are experts at working with South African companies who are in financial distress. With years of experience in the field our highly talented team will work closely with you to find the right solution to your problems.
If you are a Member of a CC or a Director of a Company that do not foresee being able to pay creditors as they fall due in the ensuing 6 months, then there is a legal obligation on you to liquidate the company. Failure to do so, is a criminal offense. A Company is not allowed to trade when factually insolvent.
There are two types of business liquidations:
- The easier option is if all the members can agree that there is a financial problem, and a special resolution is taken.
- The second option results from one of the creditors lodging a case against the CC or Company. This is a lengthy process with great financial implications.
Business Liquidation is a legal process in which a liquidator is appointed to ‘wind up’ the affairs of a Company or Close Corporation, and to realize assets and divide the assets amongst creditors according to the stipulations in the Companies Act. The main aim of liquidation is to divide the yield from the sale of assets amongst creditors fairly and to dissolve the Company in an orderly manner.
At the end of the liquidation process, the company ceases to exist. The purpose of liquidation is to ensure that all the company’s affairs have been dealt with properly.
- Ensuring all company contracts (including employee contracts) are completed transferred or otherwise brought to an end
- Ceasing the company’s business
- Settling any legal disputes
- Selling any assets
- Collection of money owed to the company
- Distributing any funds to creditors and returning share capital to the shareholders (any surplus after repayment of all debts and share capital can be distributed to shareholders)
It is of the utmost importance that you get professional help when considering a voluntary company liquidation. Our firm has over the past twenty-five years assisted hundreds of clients in this regards.