When an estate is sequestrated or an enterprise wound-up (whether provisionally or finally), the Master appoints an Insolvency Practitioner who then “steps into the shoes” of the insolvent.
Our main duty as Insolvency Practitioners are to look after the interests of creditors as a whole, also known as the concursus creditorum. This is done by proceeding without delay to recover and take possession of all the assets and property of the insolvent, to apply such assets and property in satisfaction of the claims of creditors and the costs of the winding-up, and to distribute the balance among those creditors who are entitled thereto.
Once appointed, we initially interview the insolvent or the directors/members (in the case of a company/close corporation) and take immediate control of all financial affairs. We secure assets, including any financial and other relevant records and conduct an investigation into the reasons for insolvency.
We investigate and report on the conduct of insolvent person and directors/members in the events leading up to insolvency. The insolvent or directors/members may face further proceedings. We have a duty to expose offences and act thereon. We examine the affairs and transactions of an enterprise before its winding-up in order to ascertain if any of the (past) directors and officers of the enterprise have contravened any provisions of the Companies Act or committed any offence.
We sell the assets of the insolvent person or enterprise who owes money and collect monies due to that person or enterprise from debtors.
We assess and handle creditors’ claims and, finally distribute the monies collected after paying costs in a specific order.