What are the two options available to place a Company or CC in liquidation?
1. By court
You obtain a court order (which is difficult to reverse/ rescind) placing the company/close corporation in liquidation.
During this process all interested parties will receive notices and also an opportunity to show cause why the company/close corporation should not be placed in liquidation. Accordingly, once we obtain the final order there will be little to no come backs. A liquidation by court order, takes about 8 weeks to finalise. The cost involved is around R40000 plus VAT for a (Pty) and around R35000 plus VAT for a CC (this is an all-inclusive fee and includes sheriff fees, advocate fees, advertising fees and all other disbursements).
2. By resolution signed by the members/shareholders and filed with CIPC (Voluntary)
The 2nd option is carriers a little bit of a risk, as no interested parties receive notice of the voluntary liquidation.
Accordingly, any interested party can set aside the liquidation by approaching a court. This option takes about 2 – 4 weeks to finalise and will cost R19900.
In both instances a liquidator must be appointed by the Master of the High Court. His fee for winding up the company is normally ± R15000 (in the event that there are no assets to sell off to cover his fees).
The liquidator is appointed by creditors vote.
