A Stats SA survey further indicates that the number of companies and close corporations that were closed year-on-year decreased by nine percent in April 2016. Voluntary liquidations decreased by 31 cases, while compulsory liquidations increased by 17 cases.

Liquidations involves companies and close corporations whose liabilities are more than their assets. The winding up can be voluntary or by a court order.

JP Terblanche of Stats SA said there were two significant decreases during April 2016. One was the construction industry that reported 24 fewer liquidated companies and the transport, storage and communications sector which reported 21 less companies were closed.

Terblanche said the number of insolvencies of individuals and partnerships increased by 1.4 percent year-on-year in March 2016. A 0.8 percent increase was estimated in the first quarter of 2016 compared to the first quarter of 2015.

André Grobler/OFM News

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