Companies Act, 1973 (Act No. 61 of 1973)Chapter XIV: Winding-up of CompaniesWinding-up by the Court345. When company deemed unable to pay its debts |
| 1) | A company or body corporate shall be deemed to be unable to pay its debts if- |
| a) | a creditor, by cession or otherwise, to whom the company is indebted in a sum not less than one hundred rand then due-- |
| i) | has served on the company, by leaving the same at its registered office, a demand requiring the company to pay the sum so due; or |
| ii) | in the case of any body corporate not incorporated under this Act, has served such demand by leaving it at its main office or delivering it to the secretary or some director, manager or principal officer of such body corporate or in such other manner as the Court may direct, and the company or body corporate has for three weeks thereafter neglected to pay the sum, or to secure or compound for it to the reasonable satisfaction of the creditor; or |
| b) | any process issued on a judgment, decree or order of any court in favour of a creditor of the company is returned by the sheriff or the messenger with an endorsement that he has not found sufficient disposable property to satisfy the judgment, decree or order or that any disposable property found did not upon sale satisfy such process; or |
| c) | it is proved to the satisfaction of the Court that the company is unable to pay its debts. |
| 2) | In determining for the purpose of subsection (1) whether a company is unable to pay its debts, the Court shall also take into account the contingent and prospective liabilities of the company. |