Insolvency & liquidation

Once a company is unable to meet its outgoing debts as and when they fall due, or if its liabilities outweigh its assets, it is classified as insolvent. Company liquidation is a process in which a business closes, and its assets are distributed to creditors and/or shareholders in order of priority and after having conducted meetings with them.  This process can be forced, or the company can opt to enter into voluntary liquidation even before the Company is deemed insolvent. At the end of the liquidation process, the company ceases to exist and it is the duty of the appointed liquidator to ensure that all the company’s affairs have been dealt with properly. 

When an individual person is declared insolvent, they may apply to be sequestrated, which is the process in which the said individual applies to the court to be declared bankrupt.  Similar arrangements are made with any creditors, in order of priority, after a meeting of creditors. 

If you or your business are facing challenges in meeting your financial obligations, give us a call to further assist and discuss your options with you.