The decision on termination of the company is made by the owners or members of the company according to www.rgzlaw.com. This decision implies the termination of the business and the abolition of the company from the court register of the commercial court and the members of the company voluntarily initiate the liquidation procedure in which a series of actions are performed to settle the outstanding obligations, the completion of the current business and ultimately the deletion of the company from the court register.
Liquidation vs. bankruptcy
The liquidation of the company is carried out when the assets of the company are higher than the company’s liabilities. Otherwise, bankruptcy proceedings are conducted. The court register ex officio will perform the procedure of deleting the company without conducting the liquidation process when the company has a property of minor value or it has not at all and when it has not acted in a legally binding manner for the publishing of the annual financial statements for three years in a row.
This provision is recognized in the public as a mode of simple and free termination of business and deletion of a company, but failure to comply with the statutory obligation to publish the annual financial statements is subject to misdemeanor liability.
The beginning of the procedure
The decision of the members of the company to terminate the company must be in the form of a notarial certificate. Liquidation is carried out by the board members as liquidators, but other liquidators can be appointed by other natural or legal persons.
The court register shall be filed for registration of the decision on termination of the company, entry of the liquidator and their authorization for representation. Upon filing the application, the court issues a decision by which the register registers the beginning of the liquidation procedure, the entry of the liquidator and the representation authority, and the company receives the “liquidation” mark.
The decision to terminate the company is then published on the Court’s web site. Due to a change of name, after the court ruling has been made, the company should create a new stamp with the changed company name.
Upon the enrollment of the decision to terminate the company in the court register, upon the termination of the company, the creditors of the company must be invited to file their claims. The call must be published on the court’s web site, indicating that creditors are submitting their claim to the company within 6 months of the announcement of the call or 2 months after the announcement of the call at j.d.o. Known creditors need to be notified in particular.
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