Today we are going to be looking in more detail into the liquidation of a company
in South Africa. In general people start business but due to various factors, that include a downturn in the economy, businesses start to close and need to be liquidated.
Let's look into possible reasons a company needs to be liquidated.
Some of the reasons for liquidation are:
There are two main options when it comes to liquidation and these are compulsory vs voluntary.
- The company is not able to pay their debts and are forced to look into liquidation.
- The liabilities of the entity are more than the company's assets.
- The directors of the company can't agree on how the entity should be mange and conduct business.
Voluntary liquidation is a much more relaxed approach and this usually gives the company time to prepare for liquidation and to appoint a more favourable liquidator to assist with the liquidation process.
Compulsory liquidation is a much more aggressive style of going about liquidation and this is usually the case when a creditor demands the outstanding debt to be paid immediately.
If you do help, then contact us today for assistance and we will provide you with the best advice and procedure on how to proceed with your application.
It is important to note that during this process directors do stance a chance to be held responsible for some debt.
Some of the reasons why this scenario might happen are the following;
For people looking for assistance with liquidation, simply contact us by completing the enquiry form or contacting us directly on the details below.
- The director of the entity signed personal surety for debt of the company.
- Another possible reason might be that the creditor is able to prove that some transactions were handles fraudulently by the director.
Simply complete the enquiry form below and one of our consultants to contact you, to discuss the process and how we can provide assistance.
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Tel: 021 987 1288