Voluntary liquidation of CC - questions

ToniO

Active Member
Joined
Oct 24, 2006
Messages
96
Hi all

I've been doing some research and am getting conflicting answers. Perhaps someone could help me?

I am investigating voluntary liquidation due to the CC being unable to pay it's debt to SARS. SARS has not requested the liquidation.

One article suggests that
Liquidating does not write off any sureties that the directors or members signed for, but it does write off all other debt. The business owner can continue with the business if so wanted. Any tax debt (SARS – Receiver of Revenue debt) is also written off in the liquidating process.
Another says:
For a company to be voluntarily wound up, section 80 of the Act requires that a company’s shareholders must adopt a special resolution which will indicate that they agree to the winding up of the company. The company is also required to submit security to the Master of the High Court for payment of the company’s debt. This will be for payments to be made within a 12-month period, commencing after the start of the winding up of the company, should it be required. The result of winding up a company, is that the affected company ceases to conduct any business and as a consequence thereof is being removed from the Companies and Intellectual Property Commission (CIPC) registration database.
I don't understand how the company could be expected to provide security for the company's debts if it is being liquidated because it can't pay its debts!

The CC has only one member and it has de facto ceased to do business.
Will the sole member be personally liable for the tax debt if the business is no longer viable, and applies for voluntary liquidation?

I'd appreciate any advice here!
Thanks in advance.
 
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