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Liquidation is not a failure, reset button, let us assist you begin over with no debt, and with a correctly structured Business

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info@liquidationexperts.co.za

We can assist with the following:
Voluntary Liquidation
Business Rescue
Business Restructuring
SARS – Settlement, Payment Plan, Compromise
Compulsory Liquidation of a Debtor
Business Comprises (with Creditors)

Business Restructuring

Stop Legal Action Immediately, Summons, Repossession of Vehicles, House, and Assets

Contact us before it is too late!!

Registered Insolvency Practitioners, Advocates, Business Rescue Experts, Crypto & Fraud Investigations

Express Liquidation Service

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WHEN DO, YOU NEED TO APPLY FOR LIQUIDATION.

Liquidation Is Not the End of the Road and Is Not Necessarily a Symptom of Failure. Let Us Help Your Business Get Rid of SARS And Other debt.
Liquidation gives results. Benefits of liquidation.

Stop Legal Action Immediately, Summons, Repossession of Vehicles, House, and Assets.

Contact us before it is too late!!

Registered Insolvency Practitioners, Advocate, Business Rescue Experts

Other signed of Financial distress, Example (SARS, Creditors issued summons, Repossesion.

The Symptoms:

1) You’re struggling to be profitable.

2) Your margins are slipping (gross or net).

3) Your sales are stagnant or decreasing.

4) Your rate of sales growth is declining.

5) You are profitable, but do not have positive cash flow from operations.

The Causes:

1) Renewal sales, inbound leads, or other metrics related to, market acceptance are flat lining.

2) Your employee turnover is getting higher.

3) The product or service you offer is decreasing in quality.

4) Your office/workspace/headquarters looks messy.

Questions to ask yourself

1) Do you owe Creditors in your Business that you cannot repay?

2) Are you behind on any repayments?

3) Are you owing SARS, Unions, or Suppliers?

4) Is your Debtors not paying on Time?

Business Rescue VS Liquidation

BENEFITS OF LIQUIDATION:

Outstanding debts are written off
Legal action is halted
Employees can claim redundancy pay
Leases can be cancelled
Avoid court processes

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:

Company Voluntary.
Business Rescue via Court Application or CIPC.
Business Restructuring.
SARS and Creditors Compromise

Signs of Financial Distress
The Symptoms:

As a Director or Member, you must make an informed decision on proceeding to Trade Or stop trading, in order to avoid Personal Liability in terms of the New Companies Act.

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 themselves 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 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 a surety for the debt.

ARE DIRECTORS, SHAREHOLDERS UNDER OBLIGATION TO PUT THE COMPANY UNDER RESCUE, OR IS IT A CHOICE UNDER THE NEW COMPANIES ACT!

S129(7) (As amended by Sec 82 of Act 3 of 2011)

If the board of directors of a company has reasonable grounds to believe that the company is financially distressed, they must either.

•Put the company under business rescue, or.

•Deliver a written notice to all shareholders, creditors, employees, and trade unions, that the company is financially distressed, and give reasons why the Company is not put under Rescue

•The new companies’ act’s profound influence on the liability of Members and Directors:

•The new Companies Act No. 71 of 2008 came into effect on May 1, 2011. Before the New Law came into effect, the Old Companies Act placed no direct obligation on directors and members when a company / CC was in financial problems.

If the above are not met, it is a criminal offence.

Under the new Act, a director/member may no longer "just wait and see", he must do something about it.

•ONCE THE PTY/CC HAS BEEN PLACED INTO LIQUIDATION, SARS MAY NOT PROCEED WITH ANY LEGAL OR

CRIMINAL ACTION

Please note that SARS can proceed with Criminal Proceedings:

What is Liquidation

LIQUIDATION PROCESS IN A NUTSHELL

Who Qualifies?

What is Liquidation?

Liquidation is a legal process whereby the company and its affairs are placed under the control of a liquidator, who must realize the assets and divide them amongst the creditors as stipulated in the Companies Act. The liquidator must make sure that the company is dissolved in an orderly manner.

The process of liquidation (or winding up) is the process by which a company's existence is ended.

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

plan to the creditors, MUST apply for a Business Rescue or Liquidation.

Liquidation is not the end of the Road

Talk too us, discuss all potential option available in the Best Interest of the Director nd Business !!

The Company Liquidation Process, South Africa

There are various ways to Liquidate a Company or Close Corporation

A woman at the office overlooking the city skyline

HIGH COURT LIQUIDATION

A Voluntary Liquidation can be lodged in the High Court. A director/member will sign an Affidavit stating that the
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. 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 cheaper than High Court Liquidations. The effect of a Company's Office Liquidation is the same as that of a 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
Creditors and Leases etc).

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 Company's 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 Liquidation is the winding up of the insolvent estate of the business by a Liquidator. The Master of the High Court appoints liquidators. 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 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.

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 cheaper than High Court Liquidations. The effect of a Company's Office Liquidation is the same as that of a 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
Creditors and Leases etc).

The Company Liquidation Process, South Africa

There are various ways to Liquidate a Company or Close Corporation

The Company Liquidation Process, South Africa

There are various ways to Liquidate a Company or Close Corporation

Consultation with an Insolvency Practitioner

Company Voluntary.
Business Rescue via Court Application or CIPC.
Business Restructuring.
SARS and Creditors Compromise

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

questions.

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

Michelle Connery

Managing Director

"When trade began to fall, I decided to take advantage of a free consultation with a Liquidation Expert advisor. At no stage did I feel pressured to commit. The advice provided was extremely helpful and helped me plan my next steps for the company."

Chloe van der BergWright

CEO

"Approaching Liquidation Experts to handle Company Liquidation, was one of the best decisions I could have made. The advice given was clear and easy to understand and the service was first class from start to finish. "

Paul Winter

Director

"Although nobody goes into business expecting their company to fail, With all my SARS Debt and Load shedding I had no choice but to liquidate. Liquidators were supportive and helpful through the whole liquidation process, and I would have no hesitation recommending them to others in the same position."

The Company Liquidation Process, South Africa

There are various ways to Liquidate a Company or Close Corporation

Business Rescue vs Liquidation in South Africa

BUSINESS RESCUE & LIQUIDATORS

Simply put, a liquidation and business rescue can be compared to a shut down versus rehabilitation.

Liquidation

Liquidation (also known as “winding up”) is when a debtor company that owes money to a creditor is wound up.

The creditor would typically apply to the court to, after having demanded payment from the debtor company to no avail, to have the debtor company placed into liquidation. (“compulsory liquidation”).

Members and directors of companies may also apply for winding up where the company’s liabilities clearly exceed its asset and there appears to be no prospect of the company paying its debts as they become due. (“voluntary liquidation”).

The purpose of liquidation proceedings is to shut the company down and have a liquidator appointed to dispose of the assets of the company and pay whatever proceeds might become available, to the creditors of the company by means of a legal order of preference.

During liquidation, the company cannot continue to trade through its insolvency.

Liquidation of the company results in the establishment of a concursus creditorum (coming together of creditors) and the company’s assets are frozen.

Civil proceedings are stayed and the attachment or execution of judgments after commencement of proceedings are void.

Business Rescue

Business Rescue (also known as “rescue proceedings”) are proceedings brought about to facilitate the rehabilitation of a company that is financially distressed.

These proceedings place the company, its management, and its affairs under temporary supervision.

Whilst the business rescue practitioner develops and implements a plan to rescue the company by restructuring its affairs, business property debts and other liabilities and equity in a manner that maximizes the likelihood of the company continuing in existence on a solvent basis.

The proceedings may be initiated by court application or on Resolution by the Board of Directors, the latter being filed with the Companies Intellectual Property Commission to change its status.

The process is driven by the Company’s creditors who vote on the business plan to rehabilitate the business.
The objective of liquidation proceedings is fundamentally different from that of business rescue proceedings. Liquidation proceedings are not aimed at rescuing

The Liquidation Process

Liquidation or winding-up is a relatively simple process that involves the realisation of a company's assets either by way of private treaty or by way of public auction in order to pay the costs and expenses incurred in the winding-up process

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ARE YOU TRADING RECKLESSLY AND IN INSOLVENCY

Is your Business Insolvent?

Are you Trading into Insolvency and Reckless (Incur more Debt) liabilities than Assets?

Cashflow.
Bank wants to repo Vehicles or assets.

Need Expert Advice and Assistance?

We will assist you with making the right decision (Liquidation, Business Rescue, or a Creditor's Compromise.

Need Expert Advice and Assistance? We will assist you with making the right decision (Liquidation, Business Rescue, or a Creditor's Compromise. With more than 40 years of Experience in the Insolvency industry

SERVICES BY LIQUIDATION EXPERTS:

LIQUIDATIONS
BUSINESS RESCUE
BUSINESS RESTRUCTURING
SARS COMPROMISES
CREDITORS COMPROMISES
CRYPTO CURRENCY INVESTIGATIONS
TRACKING AND TRACING OF ASSETS AND COMPANIES
NEW COMPANY AND TRUST REGISTRATION
DTI AND IDC FUNDING

Free agreements are applicable. Meetings, as per the agreement on the page, include but are not limited to phone calls, messages on any platform, all attachments, travel, and accommodation costs, as well as third-party costs. Payment must be made in advance. We work on a pay-and-pick option, and all terms and conditions apply. Power of Attorney to appoint an Expert in the field, the account will be before the client.

No payment, no work shall be done. The policy of our Business and Team of Directors and Shareholders, as well as any third-party service provider).

Our Contact details

SERVICES

Insolvency Matters

Out Team of Experts assist with all Insolvency and Legal matters.

Liquidations

We are experienced in Voluntary Liquidation via CIPC, Court and via the High Court.

We have a team of Attorneys and Advocated that we work with.

Business Rescue

Our Team can also assist with all matters relating to Business Rescue.

We also have a Team of Accountants and Fraud Investigations

Consulting

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

More information of Experts in South Africa and around the World, with 12 000 People and Business part of the network.

WE ALSO HAVE A TEAM OF EXPERTS

Register Insolvency Practitioners
Business Rescue Practitioners
Advocate's
Attorneys
Accountants
Fraud Investigators
Crypto Currency Investigations
Escrow Services
All Legal.
Registrations of Business Round the World.
Security Consultants
Auctioneers

QUESTION & ANSWERS

Q: What are my obligations after a Liquidation?

A: Attend a meeting with your Liquidator if possible (which we will set up). We will attend the meeting with you.

All assets must be fully disclosed to the Liquidator.

Assist the Liquidator as much as possible.

Q: How long does it take to finalize the Liquidation of my Company/ Close Corporation?

A:The process normally takes between 12 months to twenty-four months.

The Administration process does not really involve you personally.

Q: What are the consequences of Liquidation?

A: All legal action stops immediately!!

Any attachment by Creditors put into force against the Company / Close Corporation after the commencement of the Liquidation is void.

The Directors or Members cease to be in charge of the Company / Close Corporation, the Master of the High Court will Appoint a Liquidator whom will deal with all the matters of the Company / Close Corporation.

Q: How does the Liquidator get paid?

A:There is a schedule that forms part of the insolvency act, which prescribes that the Liquidator is paid from the sale of the assets.

Fixed Property:

3% from the Sale of Immovable Property,

Movable Assets:

10% from the sale of movable assets,

Cash

1% of cash in the estate, etc.

When a Company is liquidated, and it has no assets, it costs the Liquidator a substantial amount to wind up the estate. In these circumstances, we always advise our clients to pay the Liquidators fee and expenses because the Liquidator does not want to incur losses in the winding up progress. The Director or Member may be sued by the Liquidator if there is contribution payable.

Q: Who Appoints the Liquidator, and how does he get appointed?

A: The Liquidator is appointed by the Master of the High Court by way of Requisitions received by Creditors. The Master of the High Court could also make a discretionary Appointment

Q:What about Court Actions pending against my Company / Close Corporation?

A: All Legal Action stops immediately

Q: My Company / Close Corporation has instituted legal action against a third party – what happens after Liquidation?

A: After the Liquidation has been granted, the Liquidators can decide whether they want to take the legal action further. Remember, the legal action is only suspended once the Liquidation Order has been granted.

Q: If the Liquidator does not want to proceed with legal action after the Liquidation Order has been granted, what is my Company / CC’s legal position?

A: You or anyone else can negotiate with the Liquidator to buy the right from the Insolvent Estate to proceed with the legal action in your private capacity. The price of the acquisition of this right will be determined by the probability of success as well as the quantum of the action. The purchase price can range from R1 to millions of Rand.

Q: What do I tell the Creditors or Workers of the Company or Close Corporation?

A: Request them to contact us, we will deal with them on your behalf.

Q: What is the position of People who work for me?

A: Their Contract with the Company / Close Corporation will cease to exist immediately

What claims do employees have after the Liquidation order has been granted?

Your employees stand second in line for payment after Creditors who hold security on bonds over immovable properties. They are preferent claims and the preference of their claims is determined as follows:

Salaries or wages (for a maximum of three months) are preferent up to an amount of R12,000.

Leave pay accrued in the year of insolvency or the previous year is preferent up to an amount of R4,000.

Any payments due for any other form of paid absence for a maximum of three months prior to date of insolvency is preferent in the amount of R4,000.

Severance or retrenchment pay is Preferent up to an amount of R12,000.

Contributions payable by the insolvent Company / Close Corporation as employer in respect of any employees to any pension, provident fund, medical aid, sick pay, holiday, unemployment, training or any other similar scheme is Preferent to the amount of R12,000.

Any amounts due to the employee, over and above the monies for which the employee has a Preferent claim, becomes a concurrent claim. This means that he stands in line with the Creditors, which do not hold security.

Q: What can a Creditor do if your Company does not pay its debt?

A: It is advisable to Liquidate the Company / Close Corporation, as the Creditor cannot summons you to appear in court after Liquidation.

Q: What is a requisition?

A: A requisition is a form, which Liquidators send to creditors requesting them to “support” his application to the Master of the High Court for his Appointment as Liquidator.

Q: How do I as a Creditor in a matter ensure that I receive information from the liquidator about the winding up process?

A: You send send your details to the Liquidator’s office requesting that your name be put on the mailing list of Creditors.

What is the purpose of a First & Second Meeting of Creditor’s.

The purpose of proving creditors’ claims and to vote on important issues such as the Appointment of the Final Liquidator to provide the Liquidator with directions (i.e. whether to institute legal action) and to interrogate witnesses.

Q: Are there any costs involved in signing a Requisition?
A: No.

Q: Do I have to submit a claim after signing a Requisition?

A: No

Q: I am trading through a Close Corporation/Company, but are not making a profit? The business does not have any assets, which can be used to the benefit of the creditors. Can the Close Corporation/Company be liquidated without any assets?

A: No benefit has to be proven to creditors, when a Close Corporation or Company is liquidated.

Q: I am thinking of closing my business, but what are my responsibilities towards the rental contract of the business premises?

A: All outstanding debt, as well as any arrears rent of the Close Corporation / Company, will form part of the insolvency.

Q: Do I, as Director / Member, still have a liability towards the Company’s / Close Corporation’s debt, after liquidation?

A: Only if you have signed personal surety for the Close Corporation’s / Company’s debt, creditors may “call up” (summons you in your personal capacity) the obligation under the surety ship.

Q: My business has not been making any profit for several months and my creditors have “frozen” my accounts, until they receive payment on outstanding invoices. What do I do?

A: It is best to consider liquidation of the Close Corporation / Company, if there are no future prospects for your business. You can always start a new business and try again.

Q: I am the only Member of a Close Corporation / Director of a Company and I have signed personal surety for the business debt. I am married in community of property. How will it influence my spouse if creditors “call up” the surety ships and keep me liable for the outstanding debt?

A: The creditors, after obtaining a judgement against you, will be in a position to attach the assets of the communal estate.

Definition:

The liquidation of a Company / Close Corporation is a legal process whereby the Company and its affairs are placed under the control of a liquidator, who must realize the assets and divide the assets amongst creditors according to the stipulations in the Companies Act. The main aim of liquidation is to divide the yield from the sale of assets amongst creditors fairly and to dissolve the Company in an orderly manner.

Terminology:

Q: What is the difference between “sequestration”, “bankruptcy”, “liquidation”, “insolvency” and “surrender of estate”?

A: “Sequestration”, “bankruptcy” “insolvency” and “liquidation” are all different terms, which in layman’s terms simply mean that a person or business is in such a bad financial state that creditors cannot get paid. The term “liquidation” refers to the bankruptcy of a company or close corporation and certain other legal entities. “The term “sequestration” refers to the bankruptcy of a natural person or a trust. “Surrender of estate” refers to the process where a natural person asks a court to declare him insolvent.

Q: What is a: “Trustee”, “Liquidator” and “Curator”?

A: Once a natural person is sequestrated, the Master of the High Court appoints a Trustee who must take control of the assets. In case a Company, Close Corporation or certain other legal entities are liquidated, the person appointed by the Master is referred to

as a Liquidator. Curator can be either someone who is appointed to be guardian of the assets of an institution like for example an Art Gallery or Museum. A Curator is also the title used for a person appointed as guardian of someone who does not have the mental capacity to look after his own financial affairs. The name Curator is many times erroneously used when referring to a Trustee or Liquidator. Contrary to popular believe, Trustees and Liquidators do have feelings and their hearts are not made of stone (medically proven fact).

Q: Who is “The Master of the High Court”?

A: The Master of the High Court is an institution which is the guardian of all insolvents, minor children and the estates of deceased persons. Guardians, trustees, Liquidators and Executors all report to the Master in the execution of their duties.