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The Regulations promulgated in order to deal with Covid-19 have severely impacted my business to the extent that we are considering liquidation. Do I have any other options available?

22 May 2020

The Companies Act 71 of 2008 (“Companies Act”) provides the framework to liquidate a company, but also introduced an alternative... to liquidation, namely business rescue proceedings – the biggest advantage of a successful business rescue being that the company continues to exist and employees are retained. However, the disadvantage of both of these mechanisms is that the control of the company no longer lies with the directors and is relinquished to an outsider, namely the liquidator or the business rescue practitioner. Furthermore, the fees and costs payable to the liquidator or the business rescue practitioner are also considerable. If it is intended to secure the continued existence of the business but in a restructured form, section 155 of the Companies Act provides an alternative to both of the above mechanisms: the framework for a company (or a close corporation) to enter into a compromise with its creditors, the result of which is largely the same as a successful business rescue. Given the effect on the economy of the Regulations promulgated to address Covid-19, coupled with the fact that it is illegal for companies to trade when insolvent, the section 155 compromise is an attractive alternative solution to relieve companies of their financial obligations towards creditors and to assist companies in recovering from financial distress.

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369
Article
Is it really farewell to that pesky salary attachment order?

07 October 2016

I have read a recent article that says that due to a recent court judgement, salary attachment orders are no... longer allowed. Is this correct and does that mean that the order against my salary is no longer valid?

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268
Article
Beware of the dangers of prescription

07 July 2016

I lent money to a business partner nearly 3 years ago when he was in a bit of financial trouble.... It wat not a massive amount, so I did not press him for the money. He recently won a big contract and I know things are going better with his business. When I asked him to pay back my loan, he refused and said that my claim had prescribed so there was nothing I could do and he was not going to pay it back. Surely this cannot be the case?

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345
Article
Credit agreements: You must get a notice before being sued

09 May 2016

I received a summons today from a credit provider that gave me a personal loan. I admit that I have... missed a payment or two on the loan, but did not think that I was that far behind. Surely they must at least have called me or written a letter asking me to pay up before running to court? It’s not even a big amount outstanding and now I may have to pay legal costs as well.

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389
Article
Am I really responsible for the municipal debts of a previous owner?

11 April 2016

I bought a house a few months ago. The municipality issued a rates clearance certificate to the seller and the... property was transferred in my name. When I recently queried a high water account with my municipality, the municipality responded by saying that there is still quite a large arrear debt against the property and that unless I pay they will take steps against me to collect and even sell my property if necessary. Surely this can’t be lawful?

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282
Article
How to change my ‘slow payer’ status

14 December 2015

I’m struggling to buy a car because I cannot get financing. I’ve had some financial problems which resulted in some... of my accounts falling behind. All my debt is paid off at this point but my credit record shows that I am a ‘slow payer’. Is there any way I can have this removed from my record?

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509
Article

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