Liquidation, deregistration and business rescue

Question 1

Solvent company: Liquidation -voluntary

Answer 1

Special resolution by shareholders to voluntarily liquidate

when objectives have been met and proof of no debts then request is submitted to commission

Question 2

Effects of voluntary liquidation

Answer 2

• Company= still a juristic company

- Liquidator is appointed

Question 3

Effects of voluntary liquidation

Answer 3

• Stop carrying on business

- powers of company directors cease

Question 4

Practitioner

Answer 4

Business rescue appointee

processes application for liquidation on grounds that there is no reasonable prospect that the company can be rescued.

Question 5

Creditors

Answer 5

Can apply to court for an order to wind up the company on basis of it is just and equitable to be wound up.

Question 6

Shareholders/directors/company

Answer 6

Apply to court to wind company up on the grounds that directors are deadlocked in management of the company

Question 7

Shareholders:

Answer 7

Must apply for to court on basis ;
-Directors /other persons in authority are acting in a manner that is fraudulent/illegal

or that the company’s assets are misused or wasted

Question 8

What does just/equitable?

Answer 8

• Court makes decision

- Applicable if in court, shareholder or director of company brings application

Question 9

What does just/equitable?

Answer 9

-Objectives become unlawful

Question 10

Commission applies to the court to wind up the company on grounds that

Answer 10

-Director is acting in a fraudulent or illegal manner

and the company failed to comply with compliance notice.