- What is a Liquidation Notice?
A liquidation is the winding up of a firm by selling off its free (un-pledged) assets to convert them into cash to pay the firm’s unsecured creditors. Before a liquidation application can be issued in court, a founding affidavit needs to be drafted. This affidavit will include all the details of the Applicant and / or Respondent. The Applicant is the person who wants to liquidate the company and the Respondent is the company. In the case where the Applicant is the company, there will be no Respondent. The affidavit will also include any details of the company, employees and creditors. A bond of security also needs to be signed for the purpose of the Master of the High Court.
Once the application is issued, the only people who receive this Liquidation Notice is the South African Revenue Services (SARS), the Master of the High Court, employees of the company and any trade unions. Inoxico's system will receive the notice from the Master of the High Court and make an alert available to customers.
- What is the source of Liquidation Notices?
Liquidation Notices are received from the Master of High Court.
- What is the difference between a confirmed and potential Liquidation Notices?
1) When Inoxico is able to conclusively determine the identity of the defendant, the Liquidation notice becomes confirmed.
2) When there is a probable but not exact match, or there are multiple matches, this Liquidation notice is deemed potential and added to each partially matched company.
- What should I do when I receive a Liquidation Notice?
1) We recommend your confirm the Liquidation Notice and the current status of the company by requesting an Inoxico research report and our team will investigate this in more detail.
2) We would also strongly advise that you do not take immediate action until the notice is confirmed and more details are researched by Inoxico. In some special cases the business may well still be a going concern and that the liquidation process has a minor impact on the company's future sustainability.