We have been asked quite a few times to explain the winding up of a company
(or liquidation) in more detail and that is why we decided to outline the main reasons and procedures involved.
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 winded up.
Some of the reasons for winding up of a company are:
- 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.
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 winding up of a company, 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.
For immediate assistance, please contact us directly on:
Tel: 021 987 1288