Voluntary liquidations through CIPC

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It is always a difficult decision to liquidate a company, and it should not be a complicated process once you've made the decision to pull the plug. Liquidations should be seen as a business decision to limit further financial losses and to bring the business to an end.

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A company applies for voluntary liquidation for the following reasons:

 

• The company is unable to pay its debts to creditors and to SARS

• The liabilities of the company exceed the company's assets

• The directors of the company cannot agree on how the company should be managed or how business should be done and decide to end the business. 

 

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The moment that the company is placed under liquidation, a liquidator will be appointed to manage the process from start to finish. The process is that the remaining assets will be liquidated and redistributed between the outstanding creditors. 

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The voluntary liquidation process subsists of two avenues, namely solvent and insolvent companies and the process for affecting each vary considerably.​