VOLUNTARY LIQUIDATION DEFINITION
The word voluntary liquidation refers to the fact that either the members of a CC / Directors of a company can liquidate the company by way of a voluntary liquidation. The creditors of a company can also liquidate a company via a voluntary liquidation. It is interesting to note that there are indeed five manners in which a company can be liquidated.
The voluntary liquidation process should be approached with utmost care. Should the voluntary liquidation be done by members/shareholders, then the directors become personally liable for each and every debt that the company had at date of liquidation.
The directors also become personally liable for any future claims against the company. Under our South African Law, it is very controversial that the principals of a company (being the shareholders/directors/ members) can bring a voluntary liquidation in such a manner that they don’t become personally liable.
It is of the utmost importance that you get professional help when considering a voluntary liquidation. Our firm has over the past twenty years assisted thousands of clients in this regards.
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