Process after a Business has been Liquidation
APPROXIMATE TIME SPAN OF LIQUIDATION PROCESS INSOLVENCY PROCESS STEP-BY-STEP
Appointment of Liquidator 1 to 6 months 1. Provisional sequestration/liquidation Order is granted
2. Potential Liquidators/Trustees lodge requisition within 48 hours of court order
3. Master of the High Court appoints Provisional liquidator/trustee
4. Provisional Liquidator/Trustees take control of assets
5. Provisional Liquidator/Trustees mails 1st circular + claims forms to all known Creditors First Meeting of Creditors 1 to 6 months
6. Final Sequestration/liquidation order is granted
7. Master convenes 1st Meeting of creditors/or Liquidators in case of CC.
8. First meeting takes place Second Meeting of Creditors 2 -6 months
9. Provisional Liquidators/Trustee comments on assets
10. Master of the High Court issues final certificate of appointment
11. Liquidators convene 2nd meeting
12. Advertisement appears in newspaper + 2nd report is send to all known Creditors Special Meeting to Prove Claims 3 to 6 months
13. 2nd Meeting takes place (prove claims)
14. Special Meeting to prove of late claims (if required) Lodgment of Liquidation and Distribution / Contribution Account 1 to 12 months
15. Lodge Liquidation Account with Master or apply to lodge
16. Master inspects account and issues query sheet
17. Liquidators/Trustee replies to A queries Pre Confirmation of Liquidation and Distribution / Contribution Account 1 to 12 months
18. Once all A queries are deleted: Master grants permission to advertise the Account
19. Place advertisement & send circular regarding inspection period to all proved creditors
20. Account lies open for inspection at Master & Magistrate’s office
21. If account lies free from objection, Master confirms account
22. Dividend payments are made according to confirmed account
