Liquidations, Sequestrations, Business Rescue & Compromise

OVERVIEW

All these services are available either in person or by way of video and audio conferencing.

All of these services require that you contact Crafford Inc to register as a client and pay the prescribed fee, where after an Attorney from Crafford Inc will contact you within 2 business days, to request any necessary documentation and set up an appointment.

The quoted fee each of these services is inclusive of a 30-minute in-person or virtual consultation and a brief consideration of the documents and merits, followed by sound legal advice on the further conduct and the merits of the matter, whereafter, the hourly fee is as agreed or specified in the Fee Schedule.

LIQUIDATIONS
  • When a juristic person (Company or Close Corporation) cannot pay its debts in the ordinary course of business, then it is technically insolvent, even if its assets exceed its liabilities. If a juristic person continues to trade in insolvent circumstances, the directors/members may be held liable.
  • A juristic person can be liquidated by special resolution or court order. Generally, to obtain a court order, it must be demonstrated that it would be in the best interests of the general body of creditors to do so, most courts accept a minimum dividend of R 0.20 in the R 1.00. (twenty cents in the rand).
  • The effect of liquidation is to appoint a liquidator, to liquidate the assets of the juristic person and settle creditors in order of preference; firstly secured creditors, secondly preferent creditors and thirdly concurrent creditors.
  • Unless the directors/members have signed personal suretyship or preferred themselves, the directors and members are not personally liable for the debts of the juristic person, which is deregistered after the liquidator has completed the process.
30 Minute Consultation Fee R1 100.00 (incl. VAT)

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SEQUESTRATIONS
  • When a natural person cannot pay their debts and/or their liabilities exceed their assets, they are technically insolvent and may either surrender their estate, or a creditor may apply to the court for their sequestration.
  • Generally, to obtain a court order, it must be demonstrated that it would be in the best interests of the general body of creditors to do so, most courts accept a minimum dividend of R 0.20 in the R 1.00. (twenty cents in the rand).
  • A natural person can apply for rehabilitation subject to certain conditions but is automatically rehabilitated after 10 (ten) years.
30 Minute Consultation Fee R1 100.00 (incl. VAT)

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BUSINESS RESCUE
  • juristic person may place itself under business rescue by way of a special resolution or court order. The purpose of business rescue is to afford the business an opportunity to implement a business rescue plan, to enable the business to trade it’s way out of financial distress or implement an orderly liquidation of the business.
  • To be implemented, the business rescue plan must be accepted by 75% of the creditors.
  • A Business Rescue Practitioner is appointed and takes control of the Company to ensure implementation of the business rescue plan, during which time legal proceedings are suspended.
  • To book a 30-minute consultation for a fee of R1 100.00 (incl. VAT) 
30 Minute Consultation Fee R1 100.00 (incl. VAT)

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COMPROMISE
  • When a juristic or natural person is in financial distress, they may formally or informally make an offer to settle creditors in order of preference. This is usually implemented by way of an offer to creditors via the offices of Crafford Inc.
  • To book a 30-minute consultation for a fee of R1 100.00 (incl. VAT)
30 Minute Consultation Fee R1 100.00 (incl. VAT)

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