The liquidation process can be broken down into three separate processes.
PRIOR TO THE LIQUIDATION PROCESS
In the first instance, you must determine whether liquidation is indeed the correct option. To determine this, you should consider a lot of other factors whether your company will lose its vendors listing, BEE status, long term contracts, annuity income, and status or presence in the market. A second factor to be considered in the liquidation process is to determine whether the Directors / Shareholders will be held personally liable for the debts of the company. These aspects specifically relates to instances where SARS is owed money or if there was reckless trading. The third factor which needs to be considered is sureties which the members/directors/shareholders might have signed.
The above factors are but a few of numerous factors to be considered before deciding to liquidate.
DURING THE LIQUIDATION PROCESS
Should you have decided that the appropriate option is the liquidation process, our advice is that you contact ourselves because we have vast experience in the liquidation process. It is important that, when consulting with your attorneys, you make full disclosure on the reasons why your company needs to be liquidated, assets and liabilities, income and expenditure as well as other factors such as arrears regarding employee’s salaries, stock, debtors etc. The list is long.
Your involvement in the liquidation process, once it has been handed to us, is managed on your behalf by ourselves.
AFTER THE LIQUIDATION PROCESS
Once your company has been liquidated and you have made full disclosure to the liquidator and you have handed the company’s assets over to the liquidator your personal involvement is very limited.
Even the most uncomplicated insolvent estate takes between nine months to two years to wind up due to certain formalities and processes that have to be adhered to by the liquidator. The liquidation process comes to an end once the liquidator has realized all the assets, drawn up a liquidation and distribution account, having the liquidation and distribution account be confirmed by the Master of the High Court where after he pays out dividends to creditors in a manner prescribed by law.