WHAT IS LIQUIDATION
AND WHAT WE WILL DO FOR YOU
LIQUIDATION PROCESS IN A NUTSHELL
What is Liquidation?
Liquidation is a legal process whereby the company and its affairs are placed under control of a liquidator, who must realize the assets and divide them amongst the creditors fairly as stipulated in the Companies Act. The liquidator must make sure that the company is dissolved in an orderly manner.
Liquidation (or "winding up") is a process by which a company's existence is brought to an end.
Any legal entity whose total outstanding liabilities are more than his/her total assets, and the income available is not sufficient to compile a reasonable debt rearrangement payment plan to the creditors, MUST apply for a Business Rescue or Liquidation.
First, a Liquidator is appointed, is Nominated by the Creditors and Appointed by the Master of the High Court.
The liquidator represents the interests of all Creditors.
The Liquidator supervises the liquidation, which involves collecting and realizing the company's assets (turning them into cash), discharging the company's liabilities, and distributing any funds left over among the shareholders in terms of the Insolvency Act 24 of 1936.). After these steps have been carried out, the company is formally dissolved.
Different Types of Liquidations
What are the different types of liquidation?
The law classifies liquidations into two types:
Voluntary Liquidation (by shareholders' resolution). the process whereby the shareholders appoint a liquidator, who is then answerable to the creditors or shareholders.
Compulsory (by a court order). If a Creditor brings a Liquidation Application against a Debtor.
Any legal entity whose total outstanding liabilities are more than his/her total assets, and the income available is not sufficient to compile a reasonable debt rearrangement payment plan to the creditors, MUST apply for a voluntary sequestration.
Liquidation is a legal process whereby the company and its affairs are placed under control of a liquidator, who must realize the assets and divide them among the creditors fairly as stipulated in the Companies Act. The liquidator must make sure that the company is dissolved in an orderly manner.
The new Companies Act. no 71 of 2008 states that if the directors of a company or members of a CC have reasonable grounds to believe that the business is in financial distress, they must either:
1. Place the company/cc under “business rescue”
2. Liquidate the company/cc
3. Supply written notice to all shareholders, creditors, employees and trade unions that the company is in financial difficulty and give reasons why the company is not liquidated or placed under “business rescue”. If the above are not met, it is a criminal offence!
Protect your business by “losing” it!
Regain total financial stability by getting rid of your creditors!
No assets needed!
Set up a new cc or company and carry on with your business immediately!
How long does the liquidation process take?
From date of receiving instruction, it may take anything between 7 days and 3 Months to get the liquidation in order, depending on which process we use.
WHEN MUST A COMPANY APPLY FOR LIQUIDATION
OR BUSINESS RESCUE
STEPS TO APPLY FOR CONSULTATION, ASSESMENT AND LIQUIDATION PROCESS
The Company Liquidation Process South Africa
There are various ways to Liquidate a Company or Close Corporation
HIGH COURT LIQUIDATION
A Voluntary Liquidation can be lodged in the High Court. A director/member will sign an Affidavit stating that the company is insolvent and the reasons why (we draft the documentation). If it is a Forced Liquidation, the creditor who brings the Application will sign the Affidavit and state that the company does not pay its debt, or state what reason the creditor claims the company is insolvent. A Liquidation in the High court is expensive and takes about 2 months. We only go to the High Court with a Liquidation Application if there is conflict between directors/members or any other reason to go to court. Once the Court grants a Liquidation Order, the company is liquidated.
COMPANIES OFFICE LIQUIDATION
A business can be Voluntarily liquidated at the Companies Offices by filing a Resolution to that effect. These Liquidations takes about 2 weeks and is substantially cheaper than High Court Liquidations. The effect of a Companies Office Liquidation is the same as that of a High Court Order. We draft all documentation and work electronically to ease your burden as much as possible. Once Liquidated, all debt of the company is written off (*except debt that the director/member signed personal surety for or Customs and Excise Taxes).
Liquidation is a Two-Legged Process
THE FIRST LEG
The first leg is to get the business Liquidated and that is what we specialize in. If we are Liquidating the company in the Companies Offices (and most of the time we are), the Liquidation is done electronically. We email you a form to complete, you return it. We draft the required documentation. You sign it. We lodge it. It takes about 3 - 5 days to Liquidate the Company. Fast. Effective. Affordable. If it is a High Court Liquidation, it takes about 2 - 3 months to Liquidate the Company. Once Liquidated, all debt is written off, except any debt the directors/members signed personal surety for. Also not written off are any taxes incurred in terms of the Customs and Excise Act.
THE SECOND LEG
The second leg of a Liquidation is the winding up of the insolvent estate of the business by a Liquidator. Liquidators are appointed by the Master of the High Court. Part of the liquidator's work is to inter alia hold meetings with creditors so that they can prove claims, place certain advertisements, collect and sell assets (if any), pay creditors (if there are funds) and ultimately report to the Master of the High Court about the insolvent estate of the business by lodging a Liquidation and Distribution (L&D) Account. Once the liquidator has filed the L&D Account, the liquidation is finalized.
CONTINUE WITH BUSINESS
It is possible to continue with the company after Liquidation. This is where Liquidation emerges as a great tool as we use it to Restructure your company so that you can keep on trading. Liquidation is not the end of the road or a symptom of failure, it is a wonderful mechanism granted to business owners by the Law to reposition itself to be able to continue trading.
We will advise you in accordance with your business. You can keep assets and you can keep on trading.
DIRECTORS NOT BLACKLISTED
Liquidation in itself does not affect a director or a member. It is the company that is liquidated and that is a separate legal entity. The director/member is only liable for the debt if he/she signed surety for the debt.
STEPS TO APPLY FOR CONSULTATION, ASSESMENT AND LIQUIDATION PROCESS
Step 1 -
Consultation with an Insolvency Practitioner
During your initial consultation, we will take you through some questions about the company's financial situation and give you advice on what approach is right for your company.
If the business has no future, liquidation is likely to be the right option, but if you want to continue to trade but need help dealing with creditor pressure or legal action other options might be appropriate. These would include a
Business Rescue via Court Application or CIPC
Step 2 -
Preparation and paperwork
If you decide liquidation is the right option, we'll prepare the documents for you to convene shareholders' and creditors' meetings. These can be held within a few days, but normally they happen two to three weeks after the decision to liquidate is taken.
We will prepare all the paperwork and send it out for you, but we will need you to provide us with some financial information to present to creditors. From then on all creditors can be instructed to contact us rather than you.
Step 3 -
The shareholders' and creditors' meetings
The company is formally placed into liquidation at the shareholders' meeting. For small companies whose directors and shareholders are the same, this is a paper exercise.
The creditors' meeting usually happens immediately after the shareholders' meeting. It's almost always done by conference call or video conference, so there's no need for the directors to be in the same room as creditors. In many cases no creditors join the call and the meeting is a formality.
If any creditors If any creditors do dial in, we talk them through the information provided to them prior to the meeting and they have the opportunity to ask
Step 4 -
The Liquidator's role
Our role as liquidator is to collect any money due to the company and sell its assets. The costs of the liquidation are paid from the cash collected and the remainder is shared equally amongst creditors according to how much they are owed. A liquidator also has to investigate how the company was run before the liquidation and report any findings to the Insolvency Service.
As part of the process we can also help employees make claims to the government for redundancy and other monies owed.
A company with minimal or no assets can still be liquidated, but we may have to request a payment from the director to cover the costs of the work.
Step 5 -
How does it affect the directors?
When the company is in liquidation your future involvement is minimal. You will have to complete a standard questionnaire about how the company was run and we may need your help with queries about certain assets or liabilities so that we can conclude the process as efficiently as possible.
Unless you have personally guaranteed any of the company's debts or committed serious offences in your role as a director you should have no personal liability.
A liquidation will usually finish within six to twelve months and afterwards the company is dissolved.
I phoned Liquidation Experts, spoke to one of the Team Members, forms was sent and I had a meeting. I got all the answers and assistance and assurance that I needed. You can see they know what they are doing.
Johan Bosman / Business Man / Directors
I had a Business that was in big financial trouble, the Team assited me with Liquidation. They handeld all the Legal matters and assisted me with the whole process.
Kevin Stassen / Members / Member
I was in Business with a Partner, the Business went belly up when we lost the contract, the other Director did not what to Liquidate. I spoke to Mr. Roos, and they assisted me with a Ex Part Court Application, to protect myself and the Creditors. They assisted me with the whole process. They are very Professional and understanding. I don't know what I would do if I still had all the stress of the Business and the Previous Partner, thanks for all your efforts and help. I feel like new Person.
Juanita Olivier / Director / Business Owner
VIDEOS. QUESTIONS AND ANSWERS
IN COLLABORATION WITH
Insolvency Pracitioners Since 1998
ABOUT US AND THE TEAM
Liquidation Experts is a Unique & Modern firm.
We work with businesses, Directors, Workers, Creditors, Shareholders on many different aspects of their financial and legal affairs.
Business Development, Restructuring, and Recovery services. The principal office is located in Centurion. Since our inception, we have regularly had the support of all major financial institutions, together with most of the leading companies in South Africa.
The firm’s work in the Insolvency industry is acknowledged as amongst the best and our Insolvency Practitioners have received numerous unsolicited nominations. Similarly, the Master of the High Court has, from time to time, appointed a number of us on a discretionary basis as Liquidator or Trustees, where they believed we could bring special expertise to the advantage of creditors in an estate.
Liquidation Experts Directors and Administrators have a legal or accountancy background and are thus able to use that experience where necessary in the Liquidation of large companies and Insolvent estates. We are one of the major firms of Insolvency Practitioners in Southern Africa. During the past 20 years, our practitioners have taken major appointments as liquidators and Judicial Managers in all industries in Southern Africa. Since 1998 they have been appointed inter alia in numerous estates with values exceeding R5 million each, the largest matter being R600 million.
Mr. Christopher Roos
Since 2002 has worked in the Insolvency Industry. Experience Licensed Insolvency Practitioner, Rescue, Restructuring & Recovery and Debt Counsellor
Mr. Christopher Roos started working for Sebenza Trust in April 2003 in the Insolvency Department. He obtained his Diploma in Insolvency Law and Practice through AIPSA in 2003 and his Certificate in Deceased Estate Practice through UNISA in 2007, and has various other Diploma's. Mr. Roos also worked at Kopano Auctioneers and Goma Goma (know as Steinhoff) during the school holidays.
Mr. Christopher Roos is on the Panel of National Liquidators, Curators of South Africa, Trustees and Liquidators at the Master of the High Court, and has taken numerous Appointments with offices in Centurion & branches all over South Africa, where he exclusively attends to Taking Control of Assets and the administration of Insolvent Estates and Companies in Liquidation from Provisional Appointments to the finalization of these Estates.
Mr. Christopher Roos has been involved in the numerous Business Rescue matter. With full pre- Business Rescue assessment of Business that needs to be placed into Business Rescue or Liquidation, and other forms such as Creditors Compromises (SARS and Creditors).
The main focus is to save the Business, the Workers as they are a big part of a successful Business. As a Business Rescue Practitioner or Insolvency Practitioner our aim is to always act in the best interest of the affected Persons (Workers, Banks, and other Creditors).
Since 2002 Mr. Christopher Roos has accrued numerous skills, including Insolvency Enquiries, Fraud Investigation, Tracking and Tracing of Assets, Business Negotiation, Sales, Business Restructuring, Marketing and Negotiations, Debt Collection and Compiling and Summiting of DTI and IDC Grants.
Mr. Christopher Roos has also assisted one of the Major Banks, with their Insolvency Department, and has been on various TV, Radio, and News Paper articles.
Bossa -- https://www.sabcnews.com/sabcnews/bosasa-should-blame-witnesses-not-media-for-reputational-damage/
MIRROR TRADING INTERNATION (PTY) LTD IN LIQUIDATION - 23000 BTC VALUE @ ZAR 20 000 000 000 (BILLION)
Mr. Christopher Roos can be contacted on:
Land line - 087 153 5653, Cell 082 304 7925
Linkden Profile -
WE ALSO HAVE A TEAM OF EXPERTS
Register Insolvency Practitioners
Business Rescue Practitioners
SERVICES BY LIQUIDATION EXPERTS:
TRACKING AN TRACING OF ASSET AND COMPANIES
NEW COMPANY AND TRUST REGISTRATION
DTI AND IDC FUNDING
Out Team of Experts assist with all Insolvency and Legal matters.
We are experienced in Volantary Liquidation via CIPC, Court and via the High Court.
We have a team of Attorneys and Advocated that we work with.
Our Team can also assist with all matters relating to Business Rescue.
We also have a Team of Accountants and Fraud Investigations
We can assisit with any Legal matters as the Team and other Law and Accounting Firms have a close relationship with us.
We are like a one stop shop