We assist South African companies who are in financial distress. If you are a Member of a Close Corporation (CC) or a Director of a Company that does not foresee being able to pay creditors as they fall due in the ensuing six months, then there is a legal obligation on you to liquidate the company. Failure to do so is a criminal offence. A Company is not allowed to trade when factually insolvent. We can assist in Liquidating your company quickly so that you can move on without financial concerns.

There are two types of business liquidations:

• The easier option is if all the Members/ Directors agree that there is a financial problem, and a special resolution is taken.
• The second option results from one of the creditors lodging an application against the CC or Company. This is a lengthy process with great financial implications.

Subsequently, a liquidator is appointed to ‘wind up’ the affairs of a Company or CC, and to realize 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.

At the end of the liquidation process, the company ceases to exist. The purpose of liquidation is to ensure that all the company’s affairs have been dealt with properly.

The Tax Administration Act (TAA) was enacted on 1 October 2012. In terms of the TAA, Directors, Members, Internal Bookkeepers, External Auditors are all liable for the company’s outstanding taxes. SARS can issue a civil and criminal summons in this instance. Should your company owe any taxes (IT, VAT, PAYE, SDL or UIF), it is a serious matter and will need to be dealt with immediately to mitigate these risks.

Even though we are based in Gauteng we can assist with liquidations across the whole of South Africa. Liquidation is what we do and as such we have over many years enhanced our internal processes to provide the best services at the best prices.