top of page

What happens to a director of a company in liquidation in South Africa?

What happens to a director of a company in liquidation in South Africa?


In South Africa, when a company enters liquidation, the company's assets are sold to pay off its debts, and the company is ultimately dissolved. The role and responsibilities of a director in this situation can be summarized as follows:


Ceasing of powers: Upon liquidation, the company's directors lose their decision-making powers, and the appointed liquidator takes control of the company's assets and affairs.


Cooperation with the liquidator: Directors have a legal obligation to assist and cooperate with the liquidator by providing relevant company information, records, and documents to facilitate the liquidation process.


Personal liability: In general, directors are not personally liable for the company's debts, if they have acted in good faith and in the best interests of the company. However, suppose a director has engaged in fraudulent or reckless trading, breached their fiduciary duties, or contravened the Companies Act. In that case, they may be held personally liable for the company's debts or face other legal consequences.


Disqualification: A director may be disqualified from acting as a director or managing a company for a specified period if found guilty of misconduct, dishonesty, or gross negligence during the liquidation process.


Directors need to seek legal advice and comply with their legal obligations throughout the liquidation process to mitigate potential risks and liabilities.

Comentários


Featured Posts
Check back soon
Once posts are published, you’ll see them here.
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square
Glass Buildings

CONTACT
LIQUIDATION EXPERTS

 

OUR ADDRESS

A2, 43 Estcourt Ave, Wierdapark, Centurion, Gauteng

Vista Law Chambers. 410 Vista Drive, Faerie Glen, Pretoria

 Tshwane, Gauteng.  https://vistalawchambers.co.za/

Email: info@liquidationexperts.co.za

Tel: 087 153 5659
Fax: 086-516 5380

https://www.facebook.com/www.liquidationexperts.co.za

Office Cape Town: Business Hub, Alfred Chambers, 2nd Floor,
Cape Town Cruise Terminal,
V&A Waterfront,
Cape Town,
8001

Office Durban: 4A Glendale Avenue, Westville, Durban, Gauteng, 3629

USA

2055 Limestone Road
Wilmington
Delaware
United States

For any general inquiries, please fill in the contact form:

  • Instagram
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • TikTok
bottom of page