When Things Go Wrong - Sequestration and Liquidation
Sequestration and Liquidation are legal processes, both can be only granted by a judge of the High Court..
Private Individuals get sequestrated.
CC’s and Pty Ltd’s get liquidated.
To be sequestrated in fact means you are legally bankrupt?
Technically what should happen after you have been sequestrated is that all your assets must be converted to cash and this must be split pro rata amongst your creditors. I believe a judge is not likely to grant a sequestration if the creditors are likely to get less than about 12c to R 1.00. Remember, the curator must be paid 1st!
Can you only be sequestrated if your liabilities exceed your assets? Or can you be sequestrated if you have serious cash-flow problems i.e. all your cash is tied up in fixed immovable assets and you cannot pay your creditors?
You can apply for Voluntary Sequestration or somebody else (a creditor) can apply to have you sequestrated.
“It also included settling a R105 000 debt with Stanger businessman Dawood Mangerah. Mangerah, also the ANC branch treasurer in Stanger, had threatened to sequestrate Zuma if the debt was not paid. Shaik claims Zuma informed him the debt was incurred as a result of expenditure Zuma incurred on behalf of the ANC.”
You can do it yourself but is normally done via a lawyer.
You must send a registered (?) letter to all creditors informing them of your intension/supply the curator of a list of all your creditors.
What will happen if you skip somebody?
Happens in the High Court in front of a judge. (No Magistrate’s Court or Magistrate.)
A curator is appointed by the court on recommendation of your lawyer, can be somebody with legal qualifications but not required. These people do it for living so they are not on your side or on the side of the creditors.
While you are sequestrated:
You can own property and go into debt but ONLY with the approval of the Curator.
You cannot be a member of a CC or director of a Pty Ltd.
CONSUMER AFFAIRS (UNFAIR BUSINESS PRACTICES) AMENDMENT BILL, 2000
To amend the Consumer Affairs (Unfair Business Practices) Act, 1988, so as to provide for cross examination of an expert by a specific person appointed by the chairperson of the committee; to provide for the Minister to approach a court of law for interim measures; to authorise the Minister to apply to the court to liquidate a business or sequestrate a person; to expand the powers of the curator; to provide for delegation power; and to provide for matters connected therewith.”
“To limit financial loss to consumers, it is necessary that the Minister on the recommendation of the Committee be allowed to apply to a court of law for the liquidation of a business or sequestration of a person believed to be applying an unfair business practice. It is also necessary to expand the powers of the curator through the assistance of legal representatives to ensure quicker results.”
“Amendment of section 8 of Act 71 of 1988
- Section 8 of the principal Act is hereby amended by the substitution for subsections 5 to 7 of the following subsections:
- " (5) Where prior to any investigation or report by the committee, the Minister has reason to suspect that an unfair business practice exists or may come into existence, he or she may apply to court for an order that the unfair business practice be prohibited pending the final outcome of an investigation by the committee and the decision by the Minister to prohibit such practice.
- (6) The court issuing such an order will have the power to issue such orders as it may deem appropriate in order to protect the interest of consumers, including the power to appoint a curator bonis and to authorize him or her to take possession of the business in question and/or assets thereof.
- (7) If the court has appointed a curator bonis -
- the court may appoint the curator bonis to do, subject to its directions, any one or more of the following on behalf of the business against whom the court order has been made, namely -
- to perform any particular act in respect of any of or all the property, meaning money or any other movable, immovable, corporeal or incorporeal thing including any rights, privileges, claims and securities and any interest therein and all proceeds thereof, of the business against whom the court order has been made;
- to take care of the said property;
- to administer the said property; and
- where the said property is a business or undertaking, to carry on, with due regard to any law which may be applicable to the business or undertaking;
- order the business against whom the court order has been made to surrender forthwith, or within such period as that court may determine, any property in respect of which a curator bonis has been appointed under paragraph (a), into the custody of that curator bonis.
- Any person affected by an order contemplated in sub-paragraph (b) may at any time apply -
- for the variation or rescission of the order; or
- for the variation of the terms of the appointment of the curator bonis concerned or for the discharge of that curator bonis.
- Any court which made an order contemplated in sub-paragraph (b) -
- may at any time
- vary or rescind the order; or
- vary the terms of the appointment of the curator bonis concerned or discharge that curator bonis;
- shall rescind the order and discharge the curator bonis concerned if the relevant court order is rescinded;
- may make such order relating to the fees of the curator bonis-
- from the confiscated proceeds if a confiscation order is made; or
- by the State if no confiscation order is made.".
IN THE HIGH COURT OF SOUTH AFRICA
( CAPE OF GOOD HOPE PROVINCIAL DIVISION)
CAPE TOWN : MONDAY, the 13th day of DECEMBER 2005
THIRD DIVISION: COURT NO. 17 at 10H00 a.m.
BEFORE HIS HONOUR JUDGE DAVIS
R P F Beukes vs N A Brittz & 1 ander - Sekwestrasie (Sequestration) 11512/05
M R Ahmed t/a Strand Paint & Hardware vs Meadow Star Investments 25 (Pty) Ltd - Likwidasie (Liquidation) 7608/05
New Teltron (Pty) Ltd vs Vos Foto CC - Likwidasie (Liquidation) 11012/05
Note: CC and Pty Ltd are liquidated and private individuals are sequestrated.
September 18 2006 at 08:17PM
By Murray Williams and Candice Bailey
The trustees of Brett Kebble's deceased estate have appealed to anyone in possession of the murdered mining magnate's art to contact them immediately.
Kebble was the patron of the largest visual arts award in the country, the Brett Kebble Art Awards.
His collection was a famous part of the larger-than-life businessman's treasure trove and media reports have put the value of his personal art collection at around R40 million.
Kebble is reputed to have owned a number of rare pieces, including the original of Vlad-imir Tretchikoff's major work Lost Orchid.
Other artists whom Kebble reportedly collected included Irma Stern, Gerard Sekoto and Jacob Hendrick Pierneeff.
The Cape High Court grant-ed a final sequestration order against Kebble's insolvent es-tate earlier this year.
One of the trustees, Hans Kloppers of Hans Kloppers Trustees in Stellenbosch, told the Cape Argus today that the trustees were still searching for many different types of assets that Kebble may have owned.
On the reported art trail, Kloppers said: "We're not trying to find any art, specifically.
"But, yes, we're engaging Mrs Kebble about art … we're negotiating with her. But it's not as if we're running around like spies, that's a bit exaggerated.
"What must be determined (with the art pieces), like any asset, is the ownership."
And, equally importantly: "Who paid for it?"
Kloppers is one of three trustees, along with Ansi Venter of KPMG in Johannesburg and Bantu Nduna in Cape Town. Kloppers said anyone who knew the whereabouts of any of Kebble's art should approach the trustees, if they had not already.
"Anyone would be foolish to try to hide it from us," he warned.
Already this year, the Kebble family's retreat on the Breede River near Malgas was auctioned for just on R6m.
And, more recently, another home in Johannesburg, was also sold.
A large fleet of vehicles, including luxury sports cars, has also been pounced upon.
Mystery still surrounds the murder of Kebble, who was shot dead in his car last year at the age of 41.
- This article was originally published on page 3 of Cape Argus on September 18, 2006