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Lexis® Practical Guidance: Insolvency Law

Why Lexis® Practical Guidance: Insolvency Law?

The law of insolvency envisages and accounts for sequestration of individuals and liquidations of companies, amongst various other mechanisms and processes which the law of insolvency provides for. Practical Guidance Insolvency Law covers the essential information and easy-to use resources needed to effectively and efficiently deal with insolvency legal matters in South Africa.

Practical Guidance Insolvency Law provides detailed, step-by-step guidance on the application processes, requirements and procedures as set out in the Insolvency Act 24 of 1936. Users have convenient access to legal precedents, checklists and other resources that cover each process, effectively assisting insolvency practitioners and insolvents with liquidation, sequestration and business rescue matters. The implications of each step are clearly explained so that practitioners can make informed decisions and confidently offer advice.
Content is authored and updated by expert practitioners, ensuring users have all the need-to-know and up-to-date information and resources they need to navigate the laws of insolvency.

With Lexis® Practical Guidance: Insolvency Law you get:


Convenient online access to:
  • More than 30 Topics and 80 Guidance Notes
  • Over 40 Forms, Precedents and Checklists – ensuring not a single step is missed
  • Legislation & Case Law – access to relevant cases at the click of a button
  • Commentary – understanding of the critical law
  • Over 35 Other Useful Resources such as flowcharts, external websites and additional readings

Guidance on each step taken in Insolvency Law:
  • Sequestrations & rehabilitation
  • Drafting a sequestration application
  • Procedures before, during and after voluntary surrender
  • Court and Voluntary winding-up of a company
  • The process after winding-up order is obtained
  • Provisional and final liquidators
  • Reckless trading
  • The requirements for a company to be placed under business rescue
  • What financial distress is and how to determine if a company is eligible for business rescue or not
  • Business rescue plans
    The effect of business rescue
  • Cross-border insolvency

Guidance Notes

Useful reference material that offers direct access to relevant case law, legislation and commentary works, and practical know-how on specific areas within Insolvency Law.
A few key guidance notes are outlined below. The full list can be viewed in the complete table of contents.


Procedure Regarding Voluntary Surrender

Voluntary surrender (or voluntary sequestration) of a debtor's estate, is one of the ways in which an individual's estate may be sequestrated. To do so, an application must be made by the debtor to the court for the acceptance of the surrender of his or her estate.

This guidance note outlines the procedure to implement voluntary surrender and includes drafting tips and detailed precedents of the following:

  • Notice of intention to surrender
  • Notice to creditors and other parties
  • Preparation and lodging of a statement of affairs
  • Importance of time periods and the effect of non-compliance with these requirements.

Voluntary Winding-up of a Company by Members

This guidance note deals with the winding-up of a company, and provides valuable guidance for practitioners who want to differentiate between the voluntary winding up by members rather than by creditors. It defines what a member's voluntary winding-up is and explains what this process entails, such as:

  • Adopting a special resolution at a general meeting
  • The requirement for the members and/or company to furnish the Master with a bond of security
  • The requirement for the member and/or company to complete the Statement of Affairs

When Can a Board Place the Company Under Business Rescue?

The board of a company is obliged to place a company under business rescue when the company is both financially distressed and where there exists a possibility that the company can be rescued.

This guidance note is a valuable tool for practitioners and advisors, and provides step-by-step guidance for business rescue proceedings to be undertaken by a company.
It further explains:

  • The requirements for a company to be placed under business rescue
  • What financial distress is and how to determine if a company is eligible for business rescue or not.

Practical Aids

Precedents, checklists and forms that can be used to offer advice confidently and execute tasks accurately.
A few key resources are listed below. The full list can be viewed in the complete table of contents.

  • Statement of Affairs
  • Notice of surrender of a debtor's estate
  • Form 19 – Form of security under Rule 45(5)
  • Form 37 – Security under Rule 38
    - An essential form due to the requirement to file security for an estate during a sequestration
    - A form that would ordinarily and inconveniently have to be picked up from the Master's office
    - This form is conveniently downloadable and can simply be filled in by the user.
  • Certificate of appointment of trustees
  • Notice of inability to pay debts
  • Business rescue plan
    - An editable template that can customized for the user's their personal use
    - Provides clear guidelines on how to draft one and the requirements to do so.
  • Certificate of appointment of trustees
  • Notice of motion to set aside vote
  • Founding affidavit to set aside vote
  • Example of notice for application for rehabilitation
  • Process of appointing liquidators
    - A step-by-step checklist on how a liquidator is to be appointed and the requirements for doing so.

Authors










Roxanne Wellcome
Julian Jones

LLB (University of Witwatersrand), Advanced Diploma (Insolvency Law) (University of Pretoria)

Roxanne Wellcome is an associate and Notary Public in the Dispute Resolution department at Cliffe Dekker Hofmeyr Inc with experience in insolvency, corporate recovery and business rescue. Roxanne is a member of the South African Restructuring and Insolvency Practitioners Association (SARIPA) and Insol International. Roxanne has substantial experience in assisting Banks and other creditors in insolvency related matters, with enquiries into the affairs of companies in liquidation and in the litigation involving the liquidation of companies. She is skilled in perfecting notarial bonds, the drafting of various applications (liquidation, sequestration, extension of liquidators' powers) and in numerous other aspects of Business Rescue, Restructuring and Insolvency.


BA LLB LLM (Commercial Law) (University of Cape Town), LLM (Corporate Law) (Pennsylvania State University, USA), AIPSA Diploma (Insolvency Law), AlPSA Advanced Diploma (Insolvency Law)

Julian Jones is a director in the Dispute Resolution department at Cliffe Dekker Hofmeyr, Julian is also a previous chairperson of the Cape Town Attorneys Association and was responsible for the insolvency portfolio at the Master's office. Julian is actively involved in the insolvency and business rescue industry, backed by more than 15 years' experience, acting for creditors, lenders, liquidators and business rescue practitioners.


Time is scarce and the law is ever changing. Keeping pace with the shifts is a job unto itself but, chances are, it is not your only job. 

Curated by top South African legal experts, LexisNexis® Practical Guidance™ helps you navigate dynamic legal terrain by delivering practical aids for your everyday concerns in one convenient platform .

It saves you time and energy so you can focus on the expertise that only you have.


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