The company liquidation procedure starts with a decision taken by the owner of the company / or the General Assembly about suspending the business activity of the company, termination of the company and appointment of a liquidator. The duties of the liquidator are similar to the duties of the managing director representing the company.
The liquidator represents the company in regards to the termination of all contracts of the company, collects and pays off the debts, sells assets for the purpose monetarizing their value. The remaining financial assets after covering all obligations form the liquidation quotas.
The decision for liquidation must include a time frame which can not be less than six months following the date of publishing an invitation to the company’s creditors for the arrangement of pending obligations.
National Revenue Agency must be notified about the termination of the company business activity. Within two months after receiving the notification, National Revenue Agency issues a certificate for acknowledging the company termination.
The certificate issued by the National Revenue Agency must be submitted in the Commercial register along with the decision for the company termination, a specimen of the signature, a statutory declaration and the consent of the liquidator for taking the position od liquidator.
After the application for liquidation is accepted, the company name in the Commercial Register will has the supplement- “in liquidation”. An invitation to the creditors of the company must be submitted.
After the assigned period of the liquidation has passed and there are no any claims from creditors of the company, the liquidator prepares the closing balance of the company which containins the liquidation quotas for the shareholders.
The liquidation period can be extended if there are still creditors of the company.
A company can enter the state “in bankruptcy” if its available assets are not sufficient to satisfy all of its creditors. The bankruptcy procedure is complex, involving the assignment of a trustee by the Regional Court whose main task is to include all debts, monetarization of assets /including claims against company debtors.
The last stage of the company liquidation is its de-registration from the Commercial Register as a result of which the company cease to exist.