Why is a Section 345 demand serious?
If it is not dealt with correctly, it can be used to support a presumption that the company is unable to pay its debts.
Guide pillar
Liquidation Risk Guides
Understand Section 345 demands, liquidation applications, company insolvency risk, and urgent response options.
Topic overview
What this area covers
Liquidation pressure is one of the highest-risk moments for a company. A Section 345 demand, liquidation application, sheriff action, or creditor ultimatum can shift the company's position quickly if directors do not respond with the right documents and timing.
This hub helps directors understand liquidation triggers, the difference between disputed and undisputed debts, and when negotiation, opposition, security, payment, or business rescue assessment may need urgent attention.
Core guides
Read the main resources
Situation pathways
Start with the closest situation
Your company received a Section 345 demand
Understand the 21-day demand window, liquidation risk, and when business rescue or creditor response options may need urgent assessment.
Your company is under creditor pressure
Map the route from demand letters, judgments, and creditor action toward liquidation response, negotiation, or business rescue assessment.
Common questions
What people usually need to clarify
Can liquidation be opposed?
Sometimes. The response depends on the debt, process, timing, evidence, financial position, and whether there are legal grounds to oppose.
When should directors seek urgent review?
Urgent review is sensible when deadlines, court papers, sheriff action, payroll pressure, or creditor threats could affect the company's ability to trade.
Relevant services
KLS assessment routes
Business · Company Judgment
A judgment has been granted against your company. Act before the sheriff does.
Once a court grants judgment against a company, a creditor can apply for a warrant of execution — authorising the sheriff to attach and sell company assets. The window to respond is narrow. KLS helps you act decisively.
Business · Liquidation Risk
You've received a Section 345 demand. You have 21 days. Use them.
A Section 345 demand is a formal legal step that — if ignored — deems your company unable to pay its debts and opens the door to a liquidation application. This is not a letter to file away. KLS helps you respond correctly and decisively.
Business · Business Rescue
Is your business under pressure but still worth rescuing?
When creditors, payroll, SARS, suppliers, or liquidation threats start closing in, directors need a viability assessment before options disappear. KLS checks whether rescue, liquidation response, negotiation, or another stabilization route fits.