Nexia SAB&T Enterprise Development Project at GIBS

The idea for the campaign was as a result of having identified GIBS as a strategic partner as we were exploring the idea of aligning our brand with one that is world renowned for its professionalism and focus on people development. We felt there were a lot of synergies because Nexia SAB&T is a firm that invests in our people throughout their careers. GIBS having seen that we shared similar values offered us the opportunity to get involved with the  Bambanani Car Wash and consider taking them on as our Enterprise Development beneficiaries.

Nexia SAB&T having over the years been directly involved in the upliftment of entrepreneurs decided that this would be a perfect fit for us and so on the 1st May 2018 we embarked on a campaign to provide the young entrepreneurs with eco-friendly car washing machines fully equipped with detergents and cleaning materials. We also provided clothing and branding which increased their visibility to the GIBS students and will continue to assist with mentorship and guidance over the next 2yrs. The goal being that at the end of our agreement we have been able to provide the entrepreneur with market linkages and support to ensure business sustainability. These young entrepreneurs will be better equipped to branch out and continue to provide a world class service having been coached and capacitated by us.

Nexia SAB&T recognises the importance of partnerships between educational institutions and employers and the use of resources of both the private and public sector drivers in deepening and transforming the economy. WE continue to strive towards our goal of inclusive economic growth and development, and to contribute fundamentally in reducing unemployment and poverty in line with the National Development Plan (NDP), the New Growth Path (NGP).

We believe that in order to get ahead, the South African economy is in urgent need of more entrepreneurs to boost growth, foster innovation, and aid in job creation. The reality is that much more must be done to create an enabling environment for entrepreneurship to truly flourish. Nexia SAB&T is committed to being a major driver towards this change as we understand that countries with high rates of entrepreneurial success need to have effective support structures from private and public sectors as well as established mentorship programmes for both aspirant and current entrepreneurs.

Liquidations and Insolvencies

Liquidations and Insolvencies Explained

When a business or a person is unable to pay their debts when they become due, they are considered to be insolvent. The business model is quite simple; when the money going out is more than money coming in, debts are accrued and the liabilities exceed the assets.

Sequestration

A debtor may apply for their personal estate to be sequestrated by way of voluntary sequestration or it can be sequestrated by a creditor by way of compulsory sequestration. The two most important components of applying for sequestration is that a liquidated claim should exist and an act of insolvency should be proved to have been committed.

The applicant must prove that the sequestration will be to the advantage of the general body of creditors who will ultimately receive a dividend from the proceeds of the estate. This would all form part of the Notice of Motion brought before a judge of the High Court who holds jurisdiction.

Once the final sequestration order has been granted by the High Court, the case is referred to the Master of the High Court who holds jurisdiction. The Master will then appoint an Insolvency Practitioner listed on their National Panel either by way of nomination or make a discretionary appointment. Sufficient security needs to be provided to the Master of the High Court to defray all sequestration costs until such time that a Practitioner is appointed.  All estates vest under the care of the Master of the High Court.

Insolvency Practitioners

The appointed practitioner will attend to all the administration to wind up the estate as quickly and efficiently as possible. A great deal of communication exists between the Practitioner and the creditors throughout the administration of the estate. The practitioner will collect claims, sell the assets and maintain the finances of the estate throughout the process. The Practitioner is then obligated to frame and lodge a Liquidation Account with the Master of the High Court setting out the financial situation of the estate. Should all creditors as well as the Master be satisfied with the contents of the Account, the Master will confirm the account and dividends, if any, will be paid out. In the event of a contribution being levied, the Practitioner will enforce the necessary steps to collect same. They will then proceed to finalise the winding up of the estate.

Application for Rehabilitation

The ordinary time when an application for rehabilitation by court can be made is four years after sequestration. The period in a particular case would depend on:

  • When the first account was confirmed
  • Whether the Insolvent Estate was previously sequestrated
  • Whether the Insolvent has been convicted of certain offences
  • Whether the Master recommends rehabilitation

In certain cases the insolvent may apply much earlier if:

  • After giving six weeks’ notice no claims were proved against the estate within six months from the sequestration date, the insolvent has not committed certain offences, and the estate has not been sequestrated previously
  • After the confirmation of the account providing for the payment in full of all claims of creditors with interest thereon.

Liquidation of Companies, Close Corporations and Incorporations

This is the process which precedes the dissolution of an entity. The affairs of the company are administered by tracing and taking control of assets for the payment of creditors according to their ranking of preference and the distribution of the residue amongst the shareholders according to their rights.

Types of Liquidation

Voluntary winding up may be of a solvent company or an insolvent company. Both types of voluntary winding up require the signed resolutions by members / directors which needs to comply with the following; It must be clear from the resolution that:

  • It was a special resolution,
  • Adopted by the members or directors,
  • Which provides for a creditors’ winding up of an insolvent company, or
  • Which provides for the voluntary winding up on a solvent company.

The Company, a creditor, a shareholder or a certain official may apply for the compulsory winding up of a company. The circumstances under which the company may be wound up includes:

  • Inability to pay debts, or
  • It appears to the courts that it is just and equitable that the company should be wound up.

Winding -Up

A provisional winding-up order is usually issued in the form of a rule nisi. Interested parties are invited to appear on the return date and advance reasons for the final order not to be issued. If no such reasons can be given, the court will proceed to issue the Final Liquidation Order.

Security for costs must be lodged until the appointment of a provisional liquidator. The application needs to be accompanied with a certificate from the Master of the High Court confirming that security has been lodged. A copy of the application must be served on the following:

  • The Master of the High Court
  • Registered unions
  • Employees
  • South African Revenue Service

The company will no longer be under the control of its members or directors but rather first in the Master of the High Court and then in the appointed liquidators.

Important consequences of Liquidation include:

  • Transfer of shares after liquidation are void
  • Change of status of Company or the members without approval of liquidator is void
  • Disposition of property, including claims after commencement of liquidation is void
  • All legal processes are suspended

Realisation of Assets

The appointed liquidator will proceed to realise all assets vesting in the Company and liquidate same in order to generate sufficient funds for the payment of the administration costs as well as payment of dividends to proven creditors. All creditors need to prove their claims at the official Creditors’ Meetings convened by the Master of the High Court and the appointed Liquidator.

All funds arising from the liquidation of a company need to be paid to an estate bank account which will be managed by the appointed Liquidator under the care of the Master of the High Court.

Nexia SAB&T’s Insolvency Services

Nexia SAB&T offers administration of deceased estates, both testate and intestate as well as the administration of Insolvent Estates and Liquidated Companies and Close Corporations.

Nexia SAB&T received various appointments within the Liquidation and Insolvency Industry over the years including complex and high profile estates.  Our Liquidation and Insolvency department currently has eleven liquidators on the Master of the High Court’s National Panel of which five are Senior Practicing Liquidators.

Nexia SAB&T received its very first appointment in early 2003 and has developed a fully equipped Insolvency division since then.

We have a qualified and experienced Insolvency and Deceased Estate Practitioners and Insolvency Administrators, acting as assistants and consultants to all our liquidators.

Nexia SAB&T has offices in all nine South African Provinces and take appointments nationally.

Contact Us
www.nexia-sabt.co.za
Contact: +27 21 596 5400

 

Disclaimer
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in future, and, to the extent permitted by law. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Nexia SAB&T does not accept liability for any loss arising from any action taken, or omission, on the basis of the content in this article or any documentation and external links provided.

Nexia SAB&T is a member firm of the “Nexia International” network. Nexia International Limited does not deliver services in its own name or otherwise. Nexia International Limited and the member firms of the Nexia International network (including those members which trade under a name which includes the word NEXIA) are not part of a worldwide partnership. Member firms of the Nexia International network are independently owned and operated.

Nexia International Limited does not accept liability for any loss arising from any action taken, or omission, on the basis of the content in this publication or article or any documentation and external links provided.

The trade marks NEXIA INTERNATIONAL, NEXIA and the NEXIA logo are owned by Nexia International Limited and used under licence.

References to Nexia or Nexia International are to Nexia International Limited or to the “Nexia International” network of firms, as the context may dictate.

For more information, visit www.nexia.com.