Shackleton Risk provides Surety Bonds to Liquidators, Trustees, Curators and Executors. We pride ourselves on our service delivery, and on understanding the unique requirements of our individual clients in this specialized area of insurance. Shackleton assists clients in lodging their Surety Bonds throughout the country, and obtaining their certificates of appointment as a matter of urgency. Contact the Shackleton representatives closest to you for assistance, or for any further questions you may have.
To understand more about our Surety Bond products, please read further below on our various offerings in this particular market.
Types of Surety Bond Offered:
- Liquidation is the process of winding up a company
- Sequestration is the process of winding an estate of a person.
Both processes involve converting assets of the company/estate into cash to pay the administration costs of the company/estate and to distribute any residue to creditors of the company/estate who have proved claims. Once a company/estate is liquidated/ sequestrated the company/person no longer has the power to dispose of its property. The powers of the company/person are vested in the liquidator/trustee appointed by the Master of the High Court.
Shackleton Risk (via leading local insurance companies) furnishes the bond of security also known as a suretyship, guaranteeing the proper administration of, and accounting by liquidator/trustee for all funds and property of the Company/estate under his/her administration as required by law.
According to the Administration of Estates Act, the estate of a deceased must be reported to the Master of the High Court within 14 days from date of death. The person responsible for the administration of the estate is called the Executor.
Surety bonds are provided via leading local insurance companies and lodged by or us on your behalf should you require us to do so with the Master of the High Court.
A Curator Bonis is a person appointed by a court to manage the assets and financial affairs of another person unable to do so because of mental or physical incapacity. The term “bonis” means “goods” (as in assets) in Latin.
All Curators are required to furnish security to the satisfaction of the Master of the High Court. All undertakings to the Master furnished by the Curators need to be guaranteed by an insurance company which is why Curators require surety bonds. The provision of a suretyship is not an indemnity policy but rather an accessory agreement by which the surety binds itself to the Master for the Curator's performance whilst in office. As with all suretyships, should the principal debtor (Curator) default and the surety have to make good any loss arising from such default, the surety has a right of recourse against the Curator for that amount which it has paid to the Master.
In terms of the Trust Property Control Act 57 of 1988, persons who have been appointed as Trustees in terms of a trust instrument or by Court are only legally authorised to act in that capacity once they have been formally appointed by the Master of the High Court. To be appointed by the Master as a Trustee, he/she has to make application to the Master who will issue a document known as Letters of Authority. No Trustee has powers or may commence administration of any trust property prior to obtaining such written authority of the Master.
Where Trustees are required to furnish security, they will be requested to provide a security bond also known as a suretyship by an authorised Insurer. The provision of the suretyship is not an indemnity policy but rather an accessory agreement by which the surety binds itself to the Master for the Trustee's performance whilst in office. As with all suretyships, should the principal debtor (Trustee) default and the surety have to make good any loss arising from such default, the surety has a right of recourse against the Trustee for that amount which it has paid to the Master.
A Tutor is appointed in relation to a minor who no longer has a natural guardian. That appointment can be:
- to administer the property of a minor; or
- to take care of the minor.
According to South African law a minor is a person under the age of 18 years, who has not yet been emancipated by marriage or order of court.
Surety bond premiums for Tutor bonds are set by the Master of the High Court. The premium is an annual premium of 0.6%plus VAT on the asset value of the estate which shall renew annually until no longer required by the Master of the High Court.