Liquidating your Fatgirl chat line
The resolution must be filed with the CIPC by filing the Co R40.1 with supporting documents.
Before the resolution is adopted by the company or close corporation, the company or close corporation must set security with the Master of the High Court for the payment of the company’s debts within no more than 12 months after the start of the winding-up of the company or close corporation or obtain consent of the Master to dispense with security.
According to the Small Business Administration, 23 million small companies in the United States generate 54 percent of all U. (See Reference 3) Whatever the reason for a business closure or liquidation, business owners must properly notify employees, investors and suppliers.
How you treat suppliers and vendors now can influence success of future business efforts, so make sure to keep them informed.
Treating them with respect and fairness now can lead to success in later endeavors.
Because your investors and lenders have been integrally involved in the plan for your business, arrange a meeting to discuss in-person your plans to close the business.
Then follow up with a formal letter summarizing the results of your discussion and the company's liquidation plan.
: ** A sworn statement by a director (if a company) or member (if a close corporation) authorised by the board of the company stating that the company or close corporation has no debts; and ** A certificate by the company’s or close corporation’s auditor, or a person who meets the requirements for the appointment of an auditor (if company does not have a auditor) stating that to the best of the auditor’s knowledge and belief and according to the financial records of the company or close corporation, the company or close corporation appears to have no debts.
It should be noted that the above requirements are determined by the Master itself and therefore, the above may not be correct.From the beginning of the company close corporation’s winding-up, it must stop carrying on its business except for those activities required for the benefit of the winding up process.Also all the powers of the company’s directors or close corporation’s members cease, except to the extent specifically authorised, ** by the liquidator or shareholders in a general meeting in the case of winding-up by company, or ** by the liquidator or creditors in the case of winding-up by creditors.Provide a dated and signed letter announcing the closing, reasons for closing and applicable dates to each employee or independent contractor.If your company has investors or lenders, discuss your decision to close with them as soon as you consider it a viable business option.As soon as you decide to shut down your company, craft a letter to your suppliers and vendors notifying them of your decision and the reasons behind your company's closure.