Johannesburg - Fewer companies closed down in July 2011
compared to the same month last year, continuing the downward trend, Statistics
SA said on Monday.
"A year-on-year decrease of 10.7% (from 281 to 251) was
recorded for July 2011," the agency reported.
Stats SA said liquidations take place when the affairs
of a company or close corporation are wound up because the liabilities
exceed assets, and the matter is resolved either voluntarily or by a court
The number of liquidations in the first seven months of 2011
was down by 21.4% from 2 346 to 1 843, compared to the same period last year.
During this period, company liquidations fell from 1 135
to 766 and close corporation liquidations slipped from 1 211 to 1 077.
Insolvencies - where an individual or partnership is unable
to pay its debt and is placed under final sequestration - also dropped.
"A year-on-year decrease of 31.9% (from 351 to 239) was
estimated for June 2011," Stats SA said.
The total number of insolvencies for the second quarter of
2011 dropped by 36.4% from 1 073 to 682, compared with the second quarter of