LIQUIDATIONS & RECEIVERSHIPS

  • Company Liquidation
  • Voluntary Administration
  • Receivership
  • Informal Process
  • Forensic Accounting
  • Trading Out

At Patel & Co we believe that early intervention is necessary to quickly address insolvency matters.

Insolvent Liquidations

Liquidation is a process to effectively bring a company to an end. The assets of the company are realised and creditors are paid out according to the order of priority as stipulated in the Seventh Schedule of the Companies Act 1993.

Any surplus is then distributed back to the shareholders and the required statutory obligations are  performed to remove the company from the register.

There are two types of liquidations:

  1. Solvent Liquidation.
  2. Insolvent Liquidation.

Liquidations can be instigated either via shareholder’s  or Court appointment.. At Patel & Co we carry out both forms of liquidations.

It is important to note that in a Court appointed liquidations , where a company has been served with a statutory demand and thereafter a winding up petition, the law allows the shareholders to appoint their own liquidator within 10 working days of being served the winding up notice. We call this the 10 day rule.