«Lex semper dabit remedium» — The law always gives a remedy

Business Support

When helping to realize our Clients’ projects we do not only use all the competence and experience of our highly qualified lawyers, but we also have the ability to attract outsourcers of related specializations - professional market makers, independent appraisers, auditors, experts in taxation, in accounting, etc., which means we can fulfill the tasks we are charged with as efficiently and fully as possible.

Liquidation of business

At present, the vast majority of law firms and other persons, working in this field, offer as liquidation of corporate entity «imaginary liquidation» , essence of which is the sale of shares to the new owner and the appointment of new CEO. Other ways of «imaginary liquidation» can be used - merger, joining and others. However, it should be kept in mind that the responsibility for all law violations of majoritarian shareholders, CEO, outside directors, the chief accountant and other parties committed during the existence of the company aren’t abdicated after «imaginary liquidation» or selling the company to a new owner!

The concept of liquidation of corporate entity is now defined by the legislator as the termination of corporate entity without rights and duties transfer in the course of succession to other persons. The procedure of liquidation can be conducted on voluntary and forced basis in two cases: first, by the solution of the members (shareholders) of the corporate entity or other agency, authorized by the constituent documents, and secondly, by the court in accordance with the law. In addition, corporate entity can be liquidated owing to recognition of its insolvent (bankrupt).

Though, tax departments have developed a simplified form and procedure of liquidation of corporate entities (lack of work for a few months, non-payment of taxes, etc.), in our opinion, this won’t solve all emerging issues. If you have seriously decided to terminate the activities of your company, we would recommend a complete cycle of liquidation in strict compliance with current legislation.