Business Rescue vs Liquidation: Which Saves More Value?

Financial distress in business rarely happens overnight. It builds over time as cash flow tightens, creditors apply pressure, and operations become strained by inflation. By the time directors need to make a decision, their options are often limited. The Companies Act 71 of 2008 introduced business rescue as an alternative to liquidation, aimed at preserving […]

What happens during liquidation?

The South African Revenue Service (“SARS”) issued Binding Private Ruling 336 on 6 December 2019. In terms of this ruling, a listed resident company (“the Company”) previously granted a loan to its wholly-owned resident subsidiary (“the Subsidiary”) in order for the Subsidiary to acquire shares in the Company. The Company subsequently decided to deregister the […]

ASSETS HELD AS SECURITY BY SARS WHEN A COMPANY IS BEING LIQUIDATED

The KwaZulu-Natal High Court previously granted an application brought by Van der Merwe and others (acting as liquidators) requiring the Commissioner for the South African Revenue Service to release certain assets held by him under his control in a customs warehouse. The assets in question were being held by the Commissioner as security for payment […]