You’re insolvent if you are unable to pay your debts!
Insolvency law in South African law refers to a status of diminished legal capacity imposed by the courts on individual persons, companies, close corporations, partnerships or trusts who are unable to pay their debts, or whose liabilities exceed their assets.
The insolvent’s diminished legal capacity entails deprivation of certain of his important legal capacities and rights, in the interests of protecting other persons, primarily the general body of existing creditors, but also prospective creditors.
Directors at War and the Liquidation Option – A Tale of Sibling Rivalry - 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 of a variety of different viewpoints and ideas can make for a strong, dynamic board […] Suing an Insolvent Debtor – Can You Recover from his Trust? - Your debtor owes you a fortune, but when his estate is sequestrated there is nothing in his own name. However you find out that he is trustee of a wealthy family trust with lots of assets that you think are really his – can you recover from his trust? The answer is yes, you can, […]