Just the other day i received instructions to recover some money for a Client that had disappeared when a company went down.
After some investigation, I came to discover that the Companies Act allows the shareholders to voluntarily dissolve a company, so long as they swear an affidavit stating that the company will be able to settle all its debts.
Alas, it is only after the liquidator has moved in that it is discovered that the company cannot pay off its debtors. By this time, the shareholders have taken off scot free. This is what I am now dealing with in the Court.
Beware of trading with companies that have only 2 or 3 shareholders doubling up as Directors of the same company.
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