WHAT HAPPENS TO EMPLOYEES IN A LIQUIDATION

WHAT HAPPENS TO EMPLOYEES IN A LIQUIDATION

The employees of an entity that is liquidated must also be dealt with, as is dealt with all the other processes. The employees become creditors of the business that is liquidated. If the staff are not paid salaries or retrenchment packages immediately before...
Insolvency: A summary of the history

Insolvency: A summary of the history

A SHORT HISTORY OF INSOLVENCY ROMAN LAW Adebtor who could not pay his/her debt under Roman law, could be sold into slavery.  In the worst case, the person could be cut into pieces and each creditor given a piece, so that one is not prejudiced over the other.  Very...
Nine things Trustees must do to properly manage a Trust

Nine things Trustees must do to properly manage a Trust

Trustees: Nine important must do’s Trustees are often appointed without the persons being appointed having any knowledge of how to manage a trust. There are at least nine things trustees must do with care to make sure that a trust is managed well. 1. Keep...
Owing VAT to SARS is not a crime

Owing VAT to SARS is not a crime

Owing VAT to SARS is not a crime Owing VAT to SARS is many a business owner’s nightmare.  SARS threatens with criminal action and tells you it is theft.  What do you do? Can SARS really lock you up for not paying VAT? There is good news: SARS can’t! This was confirmed...
Suretyship definition

Suretyship definition

The consequences of signing surety for a debt can be devastating Signing surety for a debt means that one person stands in for the debt of another. The classic case of suretyship is when a member of a Close Corporation or director of a Company signs surety for the...
Owing VAT is not theft

Owing VAT is not theft

Owing VAT is not theft Owing VAT explains: a company (as well as its directors/shareholders) or a Close Corporation (and its members) that receives VAT but does not pay over VAT to SARS, cannot be prosecuted for theft. SARS has tried this route often in the past and...
Liquidation psychology

Liquidation psychology

Liquidation psychology can play a very big part, if not the biggest, in helping or hampering a business owner to have a successful business. The single biggest factor, I find, is the decision a business owner has to make whether to liquidate or not.  This is what I...
The Liquidation Process

The Liquidation Process

The Liquidation process is, from an attorney’s perspective, a complicated and technical one. From a practical perspective, the liquidation process is a fairly simple one. Making the decision to liquidate The most difficult part of the liquidation process is for the...