Been Appointed as a Liquidator?

This means a company has either filed for voluntary liquidation or a creditor has placed the company into liquidation and creditors have motivated or endorsed your appointment as liquidator of the company (in liquidation) and the Master having regard to this support received from creditors as well exercising its own discretion, has requested you to furnish security for your obligations in office as officer of the company.

As liquidator, you will have the responsibility for collecting in all of the assets of the company and settling all claims against the company before putting the company into dissolution, that is de-registering it.  The company from date of winding up has no capacity to enter into contracts with suppliers, employees or to incur any further debt.  You must assume control of all property to which the company appears to be entitled.

The exercise of your powers is subject to the Insolvency Act, 1936 and chapter 14 of The Companies Act, 1973.

Where, during the investigation of the affairs of the company, you uncover any wrongdoing on the part of the management of the company or any debtor or creditor of the company you will have the power to hold an inquiry to establish any liability on the part of any person. Additionally should it be found that any disposal of company assets was made within 6 months immediately preceding the company going into liquidation, you may set aside such dispositions.

At all times, you will be required to provide the Master of the High Court with any and all information that may be required by law to keep him up to date as to the progress of the company. Further, you will be required at all times to act with utmost transparency and integrity.

Subscribe now
Read More

More Articles

Can I Get Retroactive Coverage With Professional Indemnity Insurance?

Short Answer: Yes, you can get retroactive cover. It’s important to note that various insurers may have distinct criteria or prerequisites concerning retroactive cover and dates. You should canvass this with your broker prior to taking out a PI policy. Retroactive cover is an important aspect of Professional Indemnity (PI) insurance. This type of cover…

Read Article > about Can I Get Retroactive Coverage With Professional Indemnity Insurance?
Which Professions Require Professional Indemnity Insurance?

While this list is not exhaustive, here are some professions in South Africa that commonly require PI insurance: It is important to note that the requirement for PI insurance may vary based on regulatory bodies, professional associations, contractual obligations, and client demands within each profession. Professionals in these fields should consult with their respective industry…

Read Article > about Which Professions Require Professional Indemnity Insurance?
What is a Curator Bonis?

Curator bonis is a legal term used in South Africa to refer to a person appointed by the court to manage the financial and legal affairs of someone who is unable to do so themselves due to mental incapacity or other reasons. The curator bonis acts as a legal representative and fiduciary for the person…

Read Article > about What is a Curator Bonis?