Question 1

Do I have to go to court?

Accepted Answer

No. A directors' voluntary liquidation is done by resolution of the directors and lodged with CIPC in terms of the Companies Act. There is no hearing and nobody has to appear before a judge.

Question 2

What does it cost?

Accepted Answer

One standard fee of R19 500. That is the full cost of our work, from checking that the company qualifies through to handing the file to a liquidator. The liquidator is paid out of the company's assets, not by you.

Question 3

When do I pay?

Accepted Answer

Not when you apply. We first check your details and confirm that a voluntary liquidation is the right route. Only then do we ask for payment.

Question 4

Which companies can do this?

Accepted Answer

A company or close corporation that is insolvent, meaning it cannot pay its debts as they fall due. If your company can still pay what it owes, this is not the right route and we will tell you.

Question 5

What happens to the company's debts?

Accepted Answer

The liquidator sells whatever assets the company has and pays creditors in the order the law sets out. Debts that cannot be paid from those assets fall away with the company.

Question 6

Am I personally liable?

Accepted Answer

As a rule, a company's debts are the company's, not the directors'. Personal liability can arise where a director signed surety or acted recklessly. Tell us about any suretyships when you apply so we can flag them early.

Question 7

What do I need to apply?

Accepted Answer

Your name and email, the company registration number, a list of creditors with the amount owing to each, and a photo or scan of each director's ID document.

Question 8

How long does it take?

Accepted Answer

Once we have your completed application and documents we usually lodge within a few days. The liquidator's work after that depends on the company's assets and creditors.

Questions, answered plainly