“I have heard that in war, haste can be folly, but have never seen delay that was wise.” (Sun Tzu, The Art of War) Collecting debt from a recalcitrant debtor can feel very much like going to war, particularly if you have to slog through the trenches of a series of increasingly costly court battles. […]
Prescription, Procrastination, and Personal Liability for Corporate Debts Read More »
If youre flogging a dead horse, make sure youre not riding it. (Josh Stern) Creditors and company directors alike need to know how best to deal with a company in financial distress. Both should learn to recognise the difference between an enterprise that has failed beyond resuscitation, and one that, given a chance, can be
When Liquidation is Inevitable: A Bad Faith Business Rescue Application Backfires Read More »
“Diplomats operate through deadlock, which is the way by which two sides can test each others determination.” (Henry Kissinger) Running a business with a partner can work brilliantly – until it doesn’t. When co-directors or shareholders fall out and can no longer see eye to eye, the company can grind to a halt, meaning everyone
What Can You do When a Director Deadlock is Killing Your Company? Read More »
“MTls business clearly amounted to an unlawful ponzi-scheme, i.e. a fraudulent investing scam promising high rates of return to investors and generating returns for earlier investors with investments taken from later investors.” (Extract from the MTI judgment) Recent media reports of the MTI (Mirror Trading International) liquidators making repayment demands of investors highlight once again
Ponzi Schemes: Can Liquidators Claw Back 600% of Payouts? Read More »
You should always take as much security for your claims as you possibly can before advancing credit or lending money to a debtor. That’s because if your debtor fails and is “liquidated” (if a corporate) or “sequestrated” (if an individual), without security you will have only a concurrent claim in the estate. And with a
Creditors: How to Secure Your Claim with a Notarial Bond Read More »
When debtors once have borrowed all we have to lend, they are very apt to grow shy of their creditors company (John Vanbrugh) Bad debt is a major issue for many businesses in these hard economic times – not taking robust steps to collect it could be fatal to your own financial position. So if
Debtor Not Paying? Consider a Liquidation Application Read More »
“Creditors have better memories than debtors” (Benjamin Franklin) In these hard times of pandemic and economically destructive unrest, an unfortunate number of businesses face collapse, and many will opt for the “first aid for companies” option of business rescue. Creditors coming out of that process with a shortfall (only the luckiest creditors are likely
Directors, Creditors – Do Personal Suretyships Survive Business Rescue? Read More »
“Bankruptcy – a fate worse than debt” (Anon) One of a Body Corporate’s fundamental duties is to collect monthly levies from the scheme’s members, and to take robust action to recover any arrears. As with any other creditor/debtor relationship however, trying to recover debt can be an exercise in frustration and delay, and the more
Bodies Corporate: Before You Sequestrate to Recover Arrears… Read More »
“The purpose of the legislature in enacting s 34(1) is to protect creditors by preventing traders who are in financial difficulty from disposing of their business assets to third parties who are not liable for the debts of the business, without due advertisement to all the creditors of the business.” (Extract from judgement below) With
Buying a Business? Make Sure the Seller Publishes Notice of the Sale Read More »
“Family quarrels are bitter things. They dont go according to any rules” (F. Scott Fitzgerald) A company’s directors have both the power and the duty to manage the company’s affairs for its benefit. When two or more directors are in place, it’s perhaps natural for the occasional disagreement to arise between them. Indeed, regular expression
Directors at War and the Liquidation Option – A Tale of Sibling Rivalry Read More »
