If one does not own property and if one does not have a certain amount of cash, then one cannot sequestrate.
The reason for this is because in terms of the Insolvency Act, when one sequestrates there must be a benefit to creditors.
For example, if you sell at a gain a share that has been in your portfolio for more than a year, the profit is subject to a capital-gains tax.
If the sale occurs less than one year after the purchase date, your profit is subject to the ordinary income tax rate, which may be greater than the capital gains tax rate.
Whenever you liquidate a small portfolio or convert the stock to cash, it has financial consequences.
For example, you may be taxed on capital gains or lose the portfolio's future appreciation.
It can take account of personal relationships of mutual trust and confidence in small parties, particularly, for example, where there is a breach of an understanding that all of the members may participate in the business, Upon hearing the application, the court may either dismiss the petition, or make the order for winding-up.