Practice Area

Insolvency, Liquidations
& Sequestrations

I advise companies, individuals, and creditors on all aspects of insolvency law, including voluntary and compulsory liquidations, voluntary and compulsory sequestrations, and business rescue proceedings. Insolvency matters require prompt, informed action and I provide the clear guidance needed to navigate a difficult process.

Discuss Your Matter
Phone
087 702 2213
Email
legal@attorneyscapetown.co.za
Practice
Company Liquidations
Voluntary Sequestration
Compulsory Sequestration
Business Rescue

Overview

Experienced insolvency advice
for companies and individuals

Insolvency is one of the most stressful legal situations a person or business can face. Whether you are a company director dealing with mounting debt, an individual whose liabilities have exceeded their assets, or a creditor seeking to recover what is owed, the decisions made at the outset of an insolvency matter can have lasting consequences.

I advise clients on both sides of insolvency proceedings. For debtors, I assess whether liquidation or sequestration is the appropriate course, advise on the advantages and disadvantages of voluntary versus compulsory proceedings, and guide clients through the process. For creditors, I advise on the most effective means of enforcing rights against insolvent debtors and represent creditors in liquidation and sequestration proceedings.

Where a company is in financial difficulty but potentially viable, I also advise on business rescue as an alternative to liquidation. Prompt advice is essential in all insolvency matters, as delays can significantly reduce the options available.

15+
Years of insolvency law experience
D&C
Debtor and creditor representation
V&C
Voluntary and compulsory proceedings
BR
Business rescue advisory

What I Handle

Insolvency services

Voluntary Liquidation
Where a company's directors and shareholders resolve to wind up the company's affairs, I advise on the requirements for a members' voluntary or creditors' voluntary liquidation, assist with the necessary resolutions and court applications, and guide the company through the process to final dissolution.
Compulsory Liquidation
Where a creditor seeks to wind up a company by court order, I advise creditors on the grounds for compulsory liquidation and the procedural requirements, and represent companies facing liquidation applications in opposing or settling such proceedings where appropriate.
Voluntary Sequestration
Where an individual's liabilities exceed their assets and sequestration would be to the advantage of creditors, I advise on whether voluntary surrender is appropriate, assist in preparing the necessary application, and guide the applicant through the process and its consequences.
Compulsory Sequestration
I advise creditors on bringing compulsory sequestration applications against insolvent debtors who have committed acts of insolvency. I also advise debtors facing sequestration applications on their rights and the options available to them, including opposing the application or negotiating with creditors.
Business Rescue
For financially distressed companies that may be capable of rescue, I advise on the commencement of business rescue proceedings under the Companies Act, the appointment of a business rescue practitioner, and the rights of affected persons including creditors, shareholders, and employees during the process.
Creditor Advisory
I advise creditors on their rights in liquidation and sequestration proceedings, including the submission and proof of claims, attendance at meetings of creditors, and challenging the conduct of liquidators or trustees. Creditors need to act promptly to protect their position in insolvency proceedings.

Common Questions

Insolvency explained

What is the difference between liquidation and sequestration?
Liquidation applies to companies and close corporations, while sequestration applies to individuals and partnerships. Both processes involve the winding up of the insolvent entity's affairs, the realisation of assets, and the distribution of proceeds to creditors. Liquidation is governed primarily by the Companies Act and the Insolvency Act, while sequestration is governed by the Insolvency Act 24 of 1936.
What is voluntary sequestration?
Voluntary sequestration occurs when an insolvent individual surrenders their estate to the court. The applicant must show that their liabilities exceed their assets and that sequestration will be to the advantage of creditors. If granted, a trustee is appointed to administer the insolvent estate and distribute assets to creditors.
What is compulsory sequestration?
Compulsory sequestration is brought by a creditor against a debtor who has committed an act of insolvency. The creditor must show that the debtor is insolvent and that sequestration will be to the advantage of creditors. Common acts of insolvency include failing to satisfy a judgment debt and disposing of assets to prejudice creditors.
What is business rescue?
Business rescue is a procedure under the Companies Act 71 of 2008 that provides financially distressed companies with an opportunity to restructure their affairs under the supervision of a business rescue practitioner. The aim is to rescue the company as a going concern, or if that is not possible, to achieve a better return for creditors than immediate liquidation would provide.
What happens to employees when a company is liquidated?
When a company is liquidated, employees' contracts of employment are suspended. Employees become concurrent creditors in the liquidation for any outstanding remuneration and other employment-related claims. In some cases, the liquidator may continue to employ certain staff to assist with the winding-up process. The Labour Relations Act provides additional protections for employees in insolvency proceedings.

Facing insolvency issues?
Get in touch today.

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