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Publication date: 16.04.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
Liquidation of a legal entity is the process of terminating the legal activity of an enterprise or organization. This process provides for the closing of all legal, financial and other obligations, as well as the division of property between creditors and participants (founders) of the legal entity. The key stage of the liquidation is the satisfaction of the creditors' claims, carried out in accordance with the current legislation in the order of priority.
The main stages of liquidation:
Decision on liquidation: The decision on liquidation of a legal entity is usually taken by the founders (participants) or a competent authority in accordance with the founding documents and legislation.
Appointment of a liquidation commission: In case of liquidation of a legal entity, a liquidation commission responsible for liquidation and distribution of property is appointed.
Registration of liquidation: After making a decision on liquidation, the company must apply to the relevant state registration body for registration of the fact of liquidation.
Announcement of liquidation: Information about the liquidation of a legal entity must be published in an official source.
Determination of assets and liabilities: The liquidator determines all assets and liabilities of the company.
Realization of assets: Company assets can be realized in order to satisfy the demands of creditors and other obligations.
Distribution of property: After the sale of assets, the liquidator distributes the received funds among creditors in accordance with legislation and priorities.
Completion of liquidation: After performing all the necessary actions and satisfying the demands of creditors, the liquidator presents a report and closes the liquidation procedure.
In the process of liquidation, it is important to observe all the requirements of the law and take all the necessary actions in accordance with the founding documents of the company and the requirements of the state authorities.
Legal aspects of priority satisfaction of creditors' claims:
1. Claims related to compensation for damage and claims for loans secured by collateral are subject to priority satisfaction.
2. The following, in order of priority, are the demands of employees for wages, vacation compensation, and payment of compensation for work done. This list should also include the requirements of the author of intellectual property objects regarding payment for the use of such an object. As for employees, it should be noted that the liquidation of the enterprise is the basis for the termination of labor relations and, accordingly, the termination of the employment contract. In this case, the employer is obliged to make all calculations with the employee and issue him a work book. This list should also include the requirements of the author of intellectual property objects regarding the payment of fees for the use of such an object.
3. Requirements for the payment of taxes and fees, contributions to the state and local budgets, as well as other mandatory payments are further subject to satisfaction.
4. In the fourth place, all other claims of creditors are subject to satisfaction.
It is important to note that the process of liquidation of a legal entity can be complicated and require professional legal support. In addition, the procedure for satisfying creditors' claims may vary depending on specific circumstances and legislation. It should be taken into account that the liquidation commission sets a deadline during which the creditor must declare their claims, if they missed this deadline, then satisfaction will be carried out at the expense of the property that remained after the satisfaction of the previous creditors' claims. Another important aspect is that in the case of non-recognition of the creditor's claims by a legal entity that is at the stage of liquidation, and the creditor has not appealed such a refusal to the court, or if he has appealed, but the court has not satisfied the claims, or in the case of insufficient assets of the legal entity itself - the creditor's claims may be considered repaid.
Legal protection of business in the process of liquidation:
Since the liquidation procedure of a legal entity is a rather complex and multi-stage process, a business lawyer will play an extremely important role in it. A lawyer for business will ensure every step of the liquidation with the necessary documentation that will meet all the requirements of the law, will conduct state registration. Consequently, the legal services for business will make it impossible to spend extra time and money and will help to implement the liquidation procedure in accordance with the requirements of the law.
