In the lifecycle of the CC, it may cease to operate and wish to be deregistered or it may be “dissolved” as a result of liquidation. These situations are usually quite complicated and technical and specialist information should be sought.
Liquidation and deregistration are not the same thing:
Liquidation implies that the business is not able to pay its debts.
Liquidation further implies that the business will cease to operate (generally as a result of financial problems).
The liquidation may come about as a result of a legal court process, or by the creditors or it may be voluntary liquidation i.e. applied for by members of the CC.
In the case of voluntary liquidation a CK6 form is submitted in duplicate together with R40-00.
Deregistration implies that a business may choose to deregister (e.g. cease to be registered as a CC) and is able to pay its debts. The business can continue in a different form eg. Sole proprietor, after the deregistration.
Once a CC has been deregistered, an application can be made to have it restored, provided that the following procedures are followed:
First confirm the status of the CC with the office because an application may have been lodged by the Receiver of Revenue for the CC’s deregistration. If it is confirmed that it is deregistered, the following procedure for restoration should be followed:
Lodge the CK3 form in duplicate accompanied by R150-00. Obtain an affidavit by members wherein they state their reasons for applying for restoration.
If there was any fixed property owned by the CC, a written confirmation must be obtained by the Department of Public Works as well as the Department of State Expenditure that they have no objection to the CC being restored. Such an intention will have to be advertised in the local newspaper to try to determine public interest in the corporation being restored. If any objections are raised the Registrar will have to be notified of such objections within 30 days from date of publication.
