Brookes Attorneys advises and represents business owners, entrepreneurs and senior managers on a wide range of legal and business issues. We work with start-ups in selecting and forming business structures and provide advice to established entities on day to day challenges. We also assist clients who are looking to buy or sell a particular business.
We aim to give business owners clear and honest advice facilitating a holistic business plan necessary for growth in the South African economy. Any successful business requires quick and reliable access to advice on the various legal aspects that impact their business every day.
Our Clients, whether large or small, have varying legal requirements dependent on the nature of the business and understanding these requirements enables us to assist them in avoiding problems in the future.
It is a legal process that applies to a company or a close corporation. It does not apply to a person. The company or close corporation’s affairs are placed under the control of an appointed liquidator. The liquidator must realise all the assets in the company/close corporation in a manner that is beneficial to the creditors. The yield from the assets which have been sold will then be evenly distributed amongst the creditors.
It is a legal process that applies to a natural person who has become insolvent.
It applies to a person that is bankrupt and/or whose liabilities out-weigh their assets. It is done by way of an Application to the High Court. Thereafter, a trustee will be appointed to control the assets and liabilities. The trustee may realise the assets and distribute the funds to creditors accordingly.
No. Once the Liquidation has been filed with the Master of the High Court, the company/close corporation will need stop all work.
Creditors will be paid if there is enough money for the Liquidator to realise and distribute.
Creditors have a hierarchy that is determined by the basis of their claim. Creditors are paid in the following order: –
A creditor that holds security for the credit. Examples: The bank that holds bond with the company/close corporation, a bank/company that has advanced motor vehicle finance or asset finance.
A creditor that holds security for a loan, or who is appointed by the law. EG: SARS and employees. The list is rather long and we will advise you on this.
A creditor that holds no security for the money that is owed to them. It is very seldom that these creditors receive any substantial refund.
EG: Suppliers that the Company has not signed a Credit Agreement with or suppliers that are COD.
Creditors can only pursue you in your personally capacity if you signed surety or you signed an agreement in your own name.