Procedure for liquidating a company
These documents will be served on the entity at its registered address as supplied in the aforementioned Affidavit.The first court date is for a provisional application.If there are no or little assets, it serves no purpose to liquidate an entity.
Businesses are different and do not need to own assets or cash.
The reason for this is, because, in terms of the Companies Act, the Close Corporations Act and the Trust Property Control Act, a Company, or a Close Corporation or a Trust (“the entity”) is insolvent the moment its liabilities exceed its assets. For this reason the entity does not have to own assets to be liquidated.
Sometimes it is a difficult decision to make whether to liquidate an entity or not.
They scratch harder and can make life difficult for you unnecessarily. If they have a nasty liquidator (and his mandate will most probably be to aggressively test whether the entity is hiding assets), then you may be in for a nasty experience.
If it is (hopefully) your nominated liquidator, you have a better chance of smooth sailing.A liquidation application is brought on a semi-urgent basis, meaning that it is brought “ex parte” (“by one party” – being the Applicant.