Tel 011 780 8296
Sequestration Services / Sekwestrasie Dienste - National
balance your bond (pty) ltd
Business rescue?
What are the Options
when the company is in financial trouble?
The New Companies Act of 2008 brings liquidations in South Africa more in line with countries like America, Canada and England. Because the New Companies Act places a heavy burden on the companies Directors to ensure that their companies does not carry on business recklessly, gross negligence or intend to fraud or specifically to trade under insolvent circumstances. Under the old companies act Directors could be held personally liable for reckless trading, gross negligence or fraudulent trading. The new companies act however tightens the loose ends.
Under South African law there are various options when your company is in financial trouble.
Pay the debt – (option 1)
Consolidate debt – (option 2)
Moratorium- (option 3)
Negotiate Extended repayment period – (option 4)
Do nothing about it (Sit back and Wait) (option 5)
Get investors on board- (option 6)
Sell shares- (option 7)
Borrow more money- (option 8)
Private Liquidation – (option 9)
Voluntary distribution – (option 10)
Liquidation- (option 11)
Trade out of the problem – (option 12)
Deregistration- (option 13)
Compromise (Section 311) – (option 14)
Company Rescue Procedure for Companies & Close Corporations (option 16b)
Liquidation Services in South Africa
Business rescue, Restructuring & Corporate Recovery
As the world economy continues to struggle, companies are beginning to consider new opportunities and are re-organizing to position themselves for recovery.
Through our network of business rescue practitioners we can assist business in the restructuring of debts, business rescue plans, and asset protection.
These firms/professionals are registered with the Companies Office to handle all corporate requirements such as annual returns and new business registrations.
Any labour issues such as retrenchments, dismissals and employment related contracts can be dealt with by the appointe business rescue practitioner.
Every employer needs to keep pace with the rapidly-expanding field of employment law - especially with the increasing number of litigious and contentious challenges by employees or former employees. But it can be hard to stay on top of all the latest developments.
