Results 1 to 6 of 6

Thread: Can you buy a business from a deregistered cc?

  1. #1
    Email problem
    Join Date
    Jun 2011
    Location
    Johannesburg
    Posts
    2
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Question Can you buy a business from a deregistered cc?

    I am new on this forum, so if I am doing this wrong please point me in the right direction. We are looking at buying a business, and I already have my own cc, so we just wanted to buy the customer list, assets, "goodwill" etc. Today I saw that this cc has been deregistered. Would we be able to still buy the "business"? k

  2. #2
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    When you buy a business, make sure you do not buy the debtors or creditors, but rather the goodwill and the list as you have it. Also ensure that you have a new bank account, and start under a new name, it may sound similar to the old one. The reason for this is that you do not know what skeletons are in the closet. You just may be buying someone elses troubles if you do.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  3. #3
    Diamond Member AndyD's Avatar
    Join Date
    Jan 2010
    Location
    Cape Town
    Posts
    4,400
    Thanks
    513
    Thanked 854 Times in 687 Posts
    If you just purchase the 'goodwill' and the customer list you may want to include a sensible restraint of trade agreement as part of the deal to prevent the old owner poaching the customers back again.
    _______________________________________________
    I am special and so is Vanash.
    _______________________________________________

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,976
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Kerryn View Post
    Today I saw that this cc has been deregistered. Would we be able to still buy the "business"? k
    You'd be buying the assets of the business, not the cc itself...

    By my understanding when the cc is deregistered it loses its separate juristic personality. Thus ownership (and liability) of the cc passes to the members in their personal capacity (essentially an unincorporated partnership).

    Based on that I suggest you make sure you have the signatures of all the listed members of the cc on a purchase/sale agreement, and the assets you are buying are clearly specified. The main concern would be one of the members coming back after the sale and disputing the representative signatory's authority to sell the asset.
    The trouble with opportunity is it normally comes dressed up as work.

  5. #5
    Email problem
    Join Date
    Jun 2011
    Location
    Johannesburg
    Posts
    2
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Thanks

    Thank you all for your input, this all helps me

  6. #6
    Gold Member
    Join Date
    Jun 2010
    Location
    Johannesburg
    Posts
    832
    Thanks
    180
    Thanked 176 Times in 145 Posts
    I second what Dave said and would add that you try make the sellers in the purchase agreement the cc and all the individual members.

Similar Threads

  1. Business is Simply Business. Or is it that simple?
    By businessmentor4u in forum Entrepreneurship and Business Management Forum
    Replies: 18
    Last Post: 24-Apr-12, 03:28 AM
  2. Business Structures & Business Bank Account in SA
    By nigelm in forum Business Finance Forum
    Replies: 4
    Last Post: 08-May-10, 04:57 PM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •