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New B-BBEE codes unveiled! Find out what this means for your business...
Trade and Industry Minister Rob Davies has unveiled the new Broad-Based Black Economic Empowerment (B-BBEE) codes of good practice. Davies announced the new codes yesterday at the B-BBEE summit in Midrand. Reports suggest the codes will be published in the Government Gazette on October 11. Read on [read more...]Department of Trade and Industry set to announce new B-BBEE codes...
The Department of Trade and Industry, together with the Black Economic Empowerment advisory council, will announce new Broad-Based Black Economic Empowerment (B-BBEE) codes of good practice at a summit on 3 and 4 October, Fin24 reports. Read on to find out how this announcement could affect your [read more...]Industrial Action Report finds SA recorded the highest number of strikes last year
A 2012 Industrial Action Report tabled by the Department of Labour (DoL) has showed a significant increase in the number of strikes last year, compared to the previous four years, EyeWitnessNews reports. According to the report, there were 99 strikes recorded last year alone. Here are the key [read more...]by FSP Business, 25 October 2013 |
'Insolvency, sequestration and liquidation, are terms that people hear about frequently, but rarely have they paid attention to them,' says The
The website adds that 'in these harsh economic times where to fall into debt can be a curse, people need to understand better the subject of insolvency so as to avoid embarrassment of being publicly declared insolvent.'
The different terms around insolvency can be explained as follows:
Insolvency: According to the Practical Tax Loose Leaf Service, being declared insolvent means that the person or entity concerned (the debtor) is unable to meet their obligations in respect of money owed to third parties (the creditors).
But, as we explain here, insolvency can also refer to the process where a debtor reaches a point where obligations can't be met in the normal course of business, or from ordinary regular earnings.
It's the point at which the debtor's assets are handed over to an administrator appointed by the Court with the aim of selling the assets to meet claims lodged by one or more creditors.
These assets, once under the curatorship of the administrator are referred to as the insolvent estate.
So that's insolvency out the way, but what do those other terms means?
Liquidation and sequestration: A corporate entity is placed in liquidation, while an individual is sequestrated.
Both terms mean the same thing. And that's to say a creditor has taken action against the debtor to recover amounts due and the debtor needs to liquidate their assets to partially or fully settle the amount owed.
In both cases, the liquidation or sequestration can be compulsory, where the creditor takes action to have a debtor declared insolvent. Or voluntary, where the debtor sees no other way to settle their obligations other than to declare themselves insolvent.
Winding up: The judicial process of realising assets for cash and partially or fully settling claims raised by creditors is referred to as the winding up of the insolvent estate, says the Loose Leaf Service
This process applies to both corporate and individual estates. It's completed once the administrator has lodged the final liquidation and distribution account and settled all claims in accordance with this account.
Now that you know what these terms mean, find out more about insolvency and tax here.
Our working hours are until 13h30. My employee is a Muslim and has requested time off to attend prayers on Fridays from 13h00. I'm concerned this will open the door for similar requests from other employees if I ... [see the answer]