What Happens After a Company Is Liquidated?
The word ‘liquidation’ tends to trigger panic. Directors fear personal liability. Employees fear losing their jobs and their money. Creditors fear they will never see a cent. And yet, for most people involved in a liquidated company, the biggest source of anxiety is not knowing what the process actually involves. This article explains, in plain […]
Your Company Structure Should Evolve as Your Business Grows
In the early days of a business, structure is often accidental. People wear multiple hats, reporting lines hang loose, and “being agile” usually means figuring things out as you go. This flexibility can be an advantage at the start. But as your business grows, what once felt dynamic can quietly become a risk. At its […]
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 […]
Will SARS allow you to deduct your company/close corporation’s assessed loss?
Under normal circumstances SARS will allow a taxpayer to carry forward the previous tax year’s assessed loss and set it off against the current tax year’s taxable income. However, there are certain circumstances under which SARS will not allow a taxpayer to carry forward the previous year’s assessed loss and the assessed loss will be […]
Removing Directors of a Company
The Companies Act, 71 of 2008, requires that the business and affairs of any company be managed by or under the direction of its board, which has the authority to exercise all of the powers and perform any of the functions of the company, except to the extent that the Companies Act or the company’s […]
Employment Equity 2016
Who must report in 2016… • All designated employers with 50 or more employees. • Employers with fewer than 50 employees who are designated in terms of the turnover threshold applicable to designated employers (Schedule 4 of the Employment Equity Amendment Act No. 47 of 2013). • Employers who have become newly designated on or […]
Requirements to restore a deregistered company
There are various circumstances in which a company (or close corporation) can become deregistered at the CIPC. The company itself can apply for deregistration at the CIPC, for any number of reasons. If a company has not submitted and paid its annual returns for more than two successive years, the CIPC will inform such a […]
Minutes of board meetings
Board meetings and the decisions made during these meetings may be determining for the effective functioning of a company. Clients are therefore reminded of the legal requirements relating to board meetings as stipulated in Article 73(6), (7) and (8) of the Companies Act 71 of 2008, which should be strictly adhered to. The Act requires […]