The Company Liquidation Process South Africa 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 a 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 take about 2 weeks and are 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).