Description
If an association, company, close corporation cannot or will not
pay its debts or meet its obligations (because of insolvency,
maladministration or any other cause), the Director-General of
Trade and Industry may either administer or liquidate a business
entity.
An association or provisional association, any member of the
association or any other interested person may apply to the courts
that the association or provisional association be administered by
the Director-General or be liquidated. The court that hears this
application must be a division of the Supreme Court or a
Magistrate's Court that has the power to administer justice in the
area where the association is located or operates. The courts can
also rule like this if it is the best and most fair ruling in the
situation.
If the court rules that the Director-General must administer the
association or provisional association, he or she will have the
authority to manage the affairs of the association or provisional
association subject to the conditions of the Companies Act,
1973.
If the association or provisional association applies in writing
to the Director-General, he or she may deregister the association
or provisional association if he or she is satisfied that
- a resolution in favour of deregistration
was adopted at a meeting attended by a substantial number of the
members of the association or provisional association;
- the resolution was adopted by a majority
of members present or represented at the meeting; and
- all relevant matters that reasonably have
to be addressed before deregistration, including the way in which
the assets and liabilities of the association or provisional
association will be dealt with, have been addressed.
If the court rules to liquidate the association or provisional
association, it will decide how the assets of the association or
provisional association will be divided equally and fairly. The
court will consider any recommendations that the Director-General
may have made with regard to the distribution of assets.
If the Director-General or an association or provisional
association, any member of the association or any other interested
person applies to have an association or provisional association
administered by the Director-General or liquidated, the Minister
may prescribe the procedure by which the association or provisional
association is administered by the Director-General or is
liquidated. The Minister may also set out the powers and duties of
the Director-General, the Registration Officer, the association,
members and interested parties in these situations.
In the case of a company or close corporation (CC), any
interested party, director or auditor of the company, the South
African Revenue Service (SARS) or the Registrar of Companies can
apply for the company or CC to be de-registered.
For more information, go to the Companies and
Intellectual Property Registration Office.
[Top]
Steps to follow
- The registered company, association or CC
must write a formal letter to apply for deregistration:
-
- state the reasons why the company or CC is
applying for deregistration
- where possible, indicate the company’s or
CC’s tax number
- all directors and members of the company
or CC should sign the letter if it is a voluntary de-registration
by director or members.
[Top]
Legal framework
Companies Act, 1973 (Act 61 of 1973)
[Top]
Service standard
Deregistration takes approximately six months.
[Top]
Cost
This service is free.
[Top]
Forms to complete
There are no forms to complete.
[Top]
Contact details |