Surety Bonds
Shackleton Risk provides surety bonds to Liquidators, Trustees, Curators, and Executors, ensuring compliance with legal requirements and offering a bond of security for the proper administration of estates and companies. Our service delivery is tailored to meet the unique needs of each client, and we assist in lodging these surety bonds throughout South Africa, facilitating the swift issuance of certificates of appointment.
To understand more about our Surety Bond products, please read further below on our various offerings in this particular market.
Types of Surety Bond Offered:
Liquidation Bonds
- Liquidation is the process of winding up a company
- Sequestration is the process of winding an estate of a person.
Both processes involve converting assets of the company/estate into cash to pay the administration costs of the company/estate and to distribute any residue to creditors of the company/estate who have proved claims. Once a company/estate is liquidated/ sequestrated the company/person no longer has the power to dispose of its property. The powers of the company/person are vested in the liquidator/trustee appointed by the Master of the High Court.
Shackleton Risk (via leading local insurance companies) furnishes the bond of security also known as a suretyship, guaranteeing the proper administration of, and accounting by the liquidator or trustee for all funds and property of the Company/estate under his/her administration as required by law.
Executor Bonds
According to the Administration of Estates Act, the estate of a deceased must be reported to the Master of the High Court within 14 days from the date of death. The person responsible for the administration of the estate is called the Executor.
Surety bonds are provided via leading local insurance companies and lodged by us on your behalf should you require us to do so with the Master of the High Court, ensuring compliance with the bond of security for deceased estate requirements.
Curator Bonds
A Curator Bonis is a person appointed by a court to manage the assets and financial affairs of another person unable to do so because of mental or physical incapacity. The term “bonis” means “goods” (as in assets) in Latin.
All Curators are required to furnish a security bond to the satisfaction of the Master of the High Court. All undertakings to the Master furnished by the Curators need to be guaranteed by an insurance company which is why Curators require surety bonds. A suretyship is not an indemnity policy but an accessory agreement by which the surety binds itself to the Master for the Curator's performance whilst in office. As with all suretyships, should the principal debtor (Curator) default and the surety have to make good any loss arising from such default, the surety has a right of recourse against the Curator for the amount it has paid to the Master.
Trustee Bonds
In terms of the Trust Property Control Act 57 of 1988, persons who have been appointed as Trustees in terms of a trust instrument or by the Court are only legally authorised to act in that capacity once they have been formally appointed by the Master of the High Court. To be appointed by the Master as a Trustee, he/she has to make an application to the Master who will issue a document known as Letters of Authority. No Trustee has powers or may commence administration of any trust property before obtaining such written authority of the Master.
Where Trustees are required to furnish security, they will be requested to provide a security bond also known as a suretyship by an authorised Insurer. The provision of the suretyship is not an indemnity policy but rather an accessory agreement by which the surety binds itself to the Master for the Trustee's performance whilst in office. As with all suretyships, should the principal debtor (Trustee) default and the surety have to make good any loss arising from such default, the surety has a right of recourse against the Trustee for that amount which it has paid to the Master.
Tutor Bonds
A Tutor is appointed concerning a minor who no longer has a natural guardian. That appointment can be:
- to administer the property of a minor; or
- to take care of the minor.
According to South African law, a minor is a person under the age of 18 years, who has not yet been emancipated by marriage or order of court.
Surety bond premiums for Tutor bonds are set by the Master of the High Court. The premium is an annual premium of 0.6% plus VAT on the asset value of the estate which shall renew annually until no longer required by the Master of the High Court.
Surety bond premiums for Tutor bonds are set by the Master of the High Court. The premium is an annual premium of 0.6%plus VAT on the asset value of the estate which shall renew annually until no longer required by the Master of the High Court.
Contact Shackleton representatives closest to you for assistance or if you have any further questions about surety bonds.