Company Liquidation
Welcome to Company Liquidation and we have been in the field of liquidation for a good number of years and will be able to provide you insight and our best advise elated to your current financial situation. We have assisted many companies to apply for liquidation over the years and if you have any questions or want to apply for liquidation, please feel to contact us online.
A company run the risk of being placed under liquidation if the entity is unable to pay the debt owed to creditors. The process is usually initiated by the directors, but can also be done by the creditors of the entity. An entity usually applies for voluntary liquidation if the company’s liabilities are more than its assets. This basically means that company cannot operate its business functions anymore and can apply for liquidation of a company.
The moment the company is placed under liquidation, a liquidator will be appointed to manage the process from there and realize all the assets of the entity. The main purpose of the process is that the remaining assets will be calculated and redistributed between the outstanding creditors.
Liquidation Meaning
In this section, we are going to be looking at the various options available to liquidate a company. There are compulsory liquidation as well as voluntary liquidation and herewith a bit more detail about the various options.
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.
Voluntary liquidation is a much more relaxed approach and this usually gives the company time to prepare for liquidation and to appoint a more favorable liquidator to assist with the liquidation process. Both options are used in the appropriate scenarios and feel free to contact us with more information on the two liquidation options.
Need to liquidate your company and need assistance? Email us on info@companyliquidation.co.za for more information as well as costing options.
