Liquidation Process in Botswana

Liquidation generally refers to the process of selling off a company’s inventory, typically at a big discount, to generate cash. In most cases, a liquidation sale is a precursor to a business closing. Once all the assets have been sold, the business is shut down.


  • ​​​The liquidation of a company is the process by which a company is brought to an end, and the assets and property of the company are redistributed.
  • Liquidation is also sometimes referred to as winding-up or dissolution, however, dissolution technically refers to the last stage of liquidation. 
  • A liquidation generally occurs when the company is insolvent and the purpose of the liquidation is to collect its assets, determine the outstanding claims against the company, and satisfy those claims in the manner and order prescribed by law.
  • Liquidation can either be voluntary or involuntary. 
  • Generally, a voluntary liquidation, which can be either a members’ voluntary liquidation or a creditors’ voluntary liquidation, is brought about by the resolution of the company and is conducted by a qualified practitioner.
  •  An involuntary liquidation is brought about by an order of the court.

Judicial management 

  • Judicial management generally refers to situations where a company is unable to pay its debts but the Court finds that the inability is due to mismanagement or an event that can be overcome. 
  • Judicial management seeks to assist this type of company to overcome a temporary setback without going out of business. An order will be made by the court placing the company under judicial management.
  • A provisional judicial manager is appointed, to assume control until the final judicial manager can be appointed.
  • Application for judicial management may be made by the company itself, a creditor, or a member of the High Court. If the judicial manager cannot return the company to solvency, then he may recommend to the court that it is wound up.


  • Sequestration generally refers to a situation where an individual’s liabilities exceed their assets and they are unable to pay their debts and therefore an application is made to the High Court for the sequestration of that individual. 
  • A provisional curator is then appointed to take over the individual’s assets and salary if such an individual is gainfully employed, until the appointment of a Curator.  The appointed Curator seeks to manage the insolvent’s assets and pay creditors and get the insolvent back on his feet if possible. 
  • The assets owned or funds generated by that company or individual are referred to as an estate. Liquidators, Judicial Managers, and Curators are professionals who know the functions and procedures for administering these estates.  
  • Following the insolvent estate being placed under liquidation, judicial management, or sequestration, the Master must as soon as possible appoint a provisional liquidator, judicial manager or curator and summon a meeting of creditors.
  • Such meetings are held in the Master’s office or in the Magistrate’s Courts before a Magistrate. Two such meetings, described as first and second creditors meetings are held at different times.
  • All claims that Creditors may have against the Company must be submitted to the appointed professional well ahead of the date of the meeting as the claims will be proved at these meetings. 

Who is eligible?

  • Anyone owed by the insolvent estate is entitled to lodge a claim with the liquidator or judicial manager who has been appointed.
  • These claimants could be companies that were doing business with the company under liquidation, the government for services rendered, parastatals, employees of the company, etc.

How do I get this service?

  • Advertisements for companies under liquidation, judicial management, or sequestration will be placed in the Botswana Government Gazette and in local newspapers notifying the public of the liquidation and inviting creditors to lodge claims.  
  • The creditor is required to request the appropriate forms from the Liquidator to lodge a claim.
  • In order to submit a claim for amounts you are owed by a company in liquidation, the necessary documents (outlined below) must be filled out and submitted to the liquidator in charge.  The liquidator will assess claims for compliance with the Companies Act [Cap 42:01] and the Insolvency Act [Cap 42:02]. 
  • It is advisable to seek professional legal advice before submitting a claim.

What supporting documents are required?

The necessary documents include:

  • An affidavit confirming the nature and amount of your claim, the affidavit must be signed by an authorized representative of the company, or by the individual filing the claim or their authorized representatives.
  • Any securities held and an explanation of how the amount arose.
  • Proof of the claim (documentation such as receipts, vouchers, shipping orders, etc).
  • A Claim Form is obtained directly from the liquidator.

How long will this service take?

The final amount and timing of collection from the company will depend on the individual company.

How much does it cost?

  • There are no direct costs associated with filing a claim against a company in liquidation.
  • Individual legal fees may apply.

Where can I get more information on this Service

Kindly contact one of the offices listed below.

The Registrar and Master
High Court – Gaborone
Private Bag 00220
Tel: (+267) 3718000 / (+267) 3971706
Fax: (+267) 3915119 

The Deputy Registrar
High court of Botswana
Private Bag F13
Tel: (+267) 2412125 / (+267) 2416378
Fax. (+267) 2416378

Opening hours are 07:30 to 12:45 and 13:45 to 16:30, Monday to Friday, except on public holidays.

Decisions of the High Court and Court of Appeal are available in hard copy or electronic format by email to members of the public who subscribe to receive them quarterly throughout the year.

Who is eligible?

Any individual or organization can request this service from the High Court and Court of Appeal.

How do I get this service?

  • Members of the public can subscribe to this service at the Court of Appeal.  ​
  • Members of the public can collect the judgments after every session.  
  • Physical copies of these judgments are only available at the High Courts. 
  • Additionally, judgments are available online on the South African Legal Information Institute (SAFLII) website. ​
  • Payment for subscriptions can only be made in person at any court.  A copy of the subscription payment receipt is sent to the Court of Appeal for processing.
  • Alternatively, members of the public can sign up for individual judgments and pay per page.

What supporting documents are required?

Presentation of the receipt.

How long will this service take?

Registration is available at the High Court and members of the public can collect the latest judgment as soon as payment is made.

Where can I obtain this service?

Court of Appeal

Private Bag 00316



Tel: (+267) 371 8000  

Gaborone High Court

P O Box 00220



Tel: (+267) 3718000

Fax: (+267) 3915119 

Francistown High Court

Private Bag F13



Tel: +267 241 2125

Fax. (+267) 2416378

Lobatse High Court

Private Bag 001



Tel: (+267) 5338000

Fax: (+267) 5332317

What are the steps in the liquidation process?

Following Liquidation, Steps to be followed under the IBC

  1. Step 1: Appointment of Liquidator ( Section 34 )
  2. Step II A – Public Announcement of Liquidation.
  3. Step II B- Claims Process in Liquidation.
  4. Step IV : Reports to be prepared by Liquidator.
  5. Step V – Sale of Assets.
  6. Step VI – Distribution of Assets as per Waterfall.

What are the 3 types of liquidation?

Image result for Liquidation Process in Botswana

Table of contents

  • #1 – Forced or Compulsory Liquidation.
  • #2 – Members Voluntary Liquidation.
  • #3 – Creditors Voluntary Liquidation.

What is the process to liquidate a company?

Liquidation is a legal process in which a liquidator is appointed to ‘wind up’ the affairs of a limited company. At the end of the process, the company ceases to exist. Liquidation does not mean that the creditors of the company will get paid.