Liquidation
Quick Answer
What is Liquidation?
Liquidation is the legal winding up of a company: assets are sold and creditors paid in legal order of priority.
Liquidation explained
A liquidator takes control, realises assets and distributes proceeds. It ends the company – and usually most of its debts, except where suretyships or misconduct reach directors personally.
Who it applies to: Companies past the point of rescue.
Cost: Legal and liquidator costs, paid from the estate.
Related terms and guides
Official source: CIPC (Companies and Intellectual Property Commission)
Always verify this information with official South African government sources. Rules, fees and thresholds change. Check SARS, CIPC, the Department of Employment and Labour or gov.za before you act.
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Last reviewed: September 2026 by the BizAnswers editorial team. How we write and check our guides.