Debt Collection

The goal of debt collection is to ultimately decrease a company’s debtors’ liability and improve its debit statistics, thereby contributing to the company’s financial health. Dynamic Debt Solutions has a ‘no collection – no fee’ policy that offers companies certainty in terms of costs.


Legally speaking, when your liabilities exceed your assets, you are insolvent. The only effective remedy is to apply for a sequestration order. The effect of a sequestration order is that creditors must claim for the insolvent estate and not from the individual.


If it is foreseeable that your business (company or closed corporation) will not be in a position to pay its creditors as the accounts fall due in the following six months, you are by law obliged to liquidate the company.

Special resolutions

Voluntary winding-up by members or shareholders of a Company or Close Corporation This process is used when the purpose for which the company was incorporated has been realised and it has no outstanding debts. The members adopt a special resolution to nominate a liquidator to administer the winding-up process of the Company or Close Corporation.

Voluntary winding-up by creditors of a Company or Close Corporation This process is applied by the members of a company that is unable to pay its debts. After completion of the prescribed CM 100 form, a special resolution is adopted and registered. Once the special resolution is registered, the liquidation of the company commences. The liquidator is appointed by the Master of the High Court to wind-up the affairs of the Company or Close Corporation.


The New Companies Act makes provision for compromises to be reached with certain creditors. In terms of this compromise, creditors may agree to accept payment of a certain percentage of the debt owed to them or grant an extension for future payments.


Rehabilitation is the legal process that relieves the insolvent of the legal implications of being declared insolvent and placing the insolvent in the same position as that of a person who has not been declared insolvent. This process occurs automatically in certain instances, but usually by Order of Court.

Business rescue

Business rescue aims to assist the rehabilitation of a company that is financially in distress by providing for the temporary supervision of the company and management of its affairs, business, as well as property by a business rescue practitioner. It offers a temporary halt on the rights of claimants against the company or property in its possession and the development and implementation of a business rescue plan to rescue the company by restructuring its business, property, debt, affairs, other liabilities and equity.