Master of the High Court: Liquidations

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Consultation with stakeholders: Policy on Appointment of Insolvency Practitioners by the Master of the High Court
The Minister of Justice and Constitutional Development has approved consultation with stakeholders on the attached Policy on Appointment of Insolvency Practitioners by the Master of the High Court. The policy will after consultation be tabled in Parliament and published in the Government Gazette...read more
20 Dec 2011

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This is a very busy and complex division which supervises the administration of thousands of insolvent estates every year.  Estates are usually administered by professionals, who know the functions and procedures.  Although insolvency procedures are too complex to explain in a page or two, the information below may be of interest to the public.

• Active Insolvency Practitioners in South Africa (List of Liquidators)

• New Companies, 2008 (Act 71 of 2008) [1.2MB] and the Regulations (Part A [2.95MB], Part B [4.13MB] and Part C [8.48MB]) under the Act.

Requirements to be admitted to the panel (Criteria for inclusion in the Panel of Liquidators):

The procedures to determine whether a person (hereinafter called "candidate) is suitable to be appointed to the said offices, are as follows:

• A candidate must apply for his/her name to be entered in the register and he/she must declare that he/she is prepared to serve in the said offices. This application to the Master must be on the candidate's official letterhead and personally signed.
• If the candidate is not self employed and in the employment of a firm of liquidators/attorneys/chartered accountants, etc. the application must be made by the management/members of that organisation..
• The application must be supported by a comprehensive curriculum vitae of the candidate, duly supported with certified copies of relevant qualifications, testimonials etcetera and signed by the candidate.
• If a candidate is/was employed by a principal whose name does in fact appear in the register the application must be accompanied by a report on each of the matters to which the candidate administered on behalf of the principal, as well as a summary of the aspects of the administration which that candidate is/was responsible. The candidature must be supported by that principal.
• If a candidate is a practicing attorney or accountant practicing in a partnership / corporation / etc., his/her partners/co-members / etc must agree to the application in writing and confirm that membership to the said register is not against any agreement between the parties.
• The candidate should declare all his/her business / occupational activities and declare that such activities will not put a strain on his/her ability to attend to his/her duties as appointee in insolvency and liquidation matters, especially when urgent attention is required.
• All candidates are required to prove that they have the necessary infrastructure ate their disposal to properly attend to all duties attached to the said offices.
• If the name of the candidate already appears in the register of a Master of the High Court of another provincial division, the said Master must confirm that fact in writing. That Master should also support the candidate's candidature.
• All candidates are required to submit proof that they are in a position to lodge security to the Master's satisfaction for the proper performance of his/her duties in the said offices.
• Candidates must satisfy the Master that they command the necessary applicable knowledge and experience to execute their duties. Specialised knowledge and qualifications will act as a strong recommendation.
• Since a successful candidate will generally only be appointed in a co-capacity with an experienced practitioner for a time (depending on the candidate's proven record), the candidate must submit the name of an experienced insolvency practitioner with his/her written confirmation, who is prepared to act jointly with him/her. It should be noted that the candidate must attend to the daily administration of the matters him-/herself in order to qualify for sole appointments at a later stage.
• On receipt of the above the candidature of the candidate will be provisionally considered, whereafter the Master will call upon the candidate to appear before him/her for a final evaluation of the candidate's suitability.

When may an insolvent apply for rehabilitation?

For details, please read sections 119 to 129 of the Insolvency Act 24 of 1936 as amended:

At any time

• If an offer of composition is made and accepted by three quarters of creditors in number and value, and after payment has been made or security given, or;
• If all creditors' claims and sequestration costs are paid in full

Six months

• After six months of sequestration if no claims have been proven against the estate, provided the insolvent has not been convicted of certain offences and has not previously been sequestrated; 

Twelve months

• If the insolvent has not been convicted of certain offences and has not previously been sequestrated, he may apply for rehabilitation after 12 months have elapsed from the date of the Master's confirmation of the first trustee's account in the estate;

Three years

• If the insolvent has not been convicted of certain offences, but has previously been sequestrated, he may not apply for rehabilitation until three years have elapsed from the date of the Master's confirmation of the first trustee's account in the estate;

Five years

• If the insolvent has been convicted of certain offences, he may not apply for rehabilitation until five years have elapsed from the date of his conviction; 

Ten years

• After 10 years have expired an insolvent is deemed to be rehabilitated unless a court orders otherwise upon the application of an interested person. Such an application must be made within the ten year period.

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