Overview Analysis of the Voluntary Winding up of Solvent Companies under the Companies Act 71 of 2008

Abstract

Winding up enables affected companies to be administered by the courts for the benefit of
their members, creditors and other relevant persons. The available assets are divided amongst
members, other relevant persons and creditors in accordance with their rights. The Companies Act 71
of 2008 (Companies Act 2008) regulates the winding up of solvent companies in South Africa while
the winding up of insolvent companies is still regulated by sections 343, 344, 346 and 348–353 of the
repealed Companies Act 61 of 1973 (Companies Act 1973). A solvent company may be dissolved
through a voluntary winding up application initiated by the company members or shareholders and/or
creditors in terms of the Companies Act 2008. Consequently, this article discusses the voluntary
winding-up of solvent companies by its shareholders or creditors under the Companies Act 2008.
Procedures, formalities and requirements that need to be followed to effect such voluntary winding up
are also discussed.