Last Updated on June 21, 2020
Functions of the Official Receiver
The functions of the Official Receiver are outlined in the Companies Act, and relate mainly to insolvency and the winding up of companies following dissolution by the Court.
Statement of Affairs
Whenever a company is dissolved by the Court, the directors and any other person who in the opinion of the Official Receiver withholds useful information in relation to the company, are required in terms of Art 226 of the Companies Act, to draw up a statement of affairs of the dissolved company. The information to be included in the aforementioned statement is comprehensive. In order to facilitate and guide directors, other company officials, or any other person as the Official Receiver deems fit, such information may be given by completing a form which also need to be verified by affidavit.
The information requested ensures appropriate safeguards to the parties involved in winding up procedures. Most of the time company officials are cooperative however the Companies Act also provides for the imposition of a penalty, in case of non-compliance with the aforementioned obligations, and to a further penalty for every day after the lapse of the twenty-one days from the date of dissolution during which such default continues. Following the receipt of such statement, the official receiver shall present a preliminary report to the court. The 21-day period during which the said statement should be submitted may be extended by the Official Receiver, if he deems it necessary (Art.226(3)). The Official Receiver may also release a person from an obligation in terms of Article 226.
Disclaimer
This document does not purport to give legal, financial or any other advice. Please be directed to seek appropriate advice from warranted professionals. Do not hesitate to contact the Office of the Official Receiver for further information if necessary or for any clarification.