Publication date: 05.06.2024
lawyer, 23 years of experience in enforcement.
Compulsory implementation of LLC in executive proceedings.
Let's talk about executive proceedings. The most important feature, which does not directly reveal its essence, but clearly depicts the situation in which the debtor found himself, is the end game. Not everyone crosses this border unscathed. The dynamics between the parties in the executive proceedings move from typical civil relations governed by the imperative to quasi-administrative relations that resemble the relations of an administrative body that uses state resources with administrative methods of influence and control in the law of public administration.
Enforcement proceedings can be characterized by its most important feature - which does not directly reveal its essence, but vividly paints a picture of the situation in which the debtor finds himself - this is the final stage. This is a line that not everyone manages to cross and continue their game. Relationships between subjects in executive proceedings are changing from civil law — where there is a certain imperative — to legal relations with an administrative component in the form of a state management body and administrative methods of influence.
A limited liability company, as a legal entity endowed with legal capacity and civil legal capacity, can be a plaintiff and a defendant in court and is responsible for its obligations with all its property. This state of affairs has developed since the adoption of special laws regulating the creation and operation of commercial organizations. A significant amendment was made by the Law "On Limited and Additional Liability Companies", which entered into force. Article 22 defines some features of realization of the participant's share. However, it is traditionally used to foreclose on this part of the debtor's share in the authorized capital, although now the legislator seems to be trying to introduce some systematization in this area - time will tell how successful it will be. The only thing that can be said is that if there is an executive document (an executive letter issued by a court, or an executive inscription of a notary, etc.) and if there is no possibility of debt repayment, the company expects forced realization of the property.
In the execution process, the main and most important feature, which does not directly speak about its essence, but vividly depicts the situation in which the debtor found himself, is the final stage. This is where not everyone can go beyond once. Relations between subjects at this stage change from civil to legal; and the first has an imperative character, and the second has an administrative component through the state administration body and administrative methods of influence.
The direct procedure for compulsory realization of an LLC in enforcement proceedings should be set out as follows: the Company is responsible for its obligations with all its property; Foreclosure on the share of a company participant is carried out on the basis of an executive document on the collection of funds from the participant or on the basis of an executive document of foreclosure on the property guarantor's share - pledged as security for the obligation of another person. Foreclosure on the debtor's property involves seizure, seizure (freezing of assets) and forced expropriation. Analyzing the legislation, we can conclude that the sale procedure is not provided for. To satisfy the demands of creditors, only the realization of the company's property and funds can be granted.
During enforcement proceedings, the state bailiff imposes a seizure on the property and makes the relevant decisions - in addition to searching the debtor's property, which is actively supported by the creditor. If there are attempts to circumvent the seizure of accounts (for example, by opening new ones), this may lead to criminal liability of the company officials involved.
And then the transfer of property takes place taking into account any other law that establishes the procedure. Enforcement documents are subject to recovery from the debtor's funds in national and foreign currencies, which are directly with the debtor or stored in cash registers or other premises of the debtor, in banks and other financial institutions, including on accounts opened on behalf of a legal entity through its structural subdivisions, as well as those that do not have such a status (branches, representative offices, etc.) - among which there may be information about the seizure of accounts. The executor requests information from (in particular) revenue and tax authorities.
In general, at this stage, we note that the executor's efforts should be aimed at covering all possible sources of information about the debtor's property (for example, the real estate cadastre). The absence of the company's cash fund causes a direct impact of enforcement on the debtor's property in the amount necessary for the execution of the executive document, taking into account the costs of enforcement and other costs related to enforcement proceedings. There is a procedure for selling property. The first is property that is not directly used in production; followed by real estate objects and other fixed means of production.
Once you've identified the property, it's time to appraise it. The value of the debtor's property is determined by agreement between the parties to the enforcement proceedings — the debt collector and the debtor. In case of failure to reach an agreement on this issue and failure to inform the executor about this in writing, he independently determines the value of the debtor's property. The sale of seized property must be done through electronic auctions or at a fixed price applicable to property whose appraised value does not exceed 50 minimum wages, but not for immovable property, vehicles or vessels by air, sea or river.
During enforcement actions, active interaction with the plaintiff and search of the debtor's property, the state bailiff, on the basis of his decisions, seizes this property. An attempt to circumvent the arrest of the account by opening a new one may lead to criminal liability of company officials.
During enforcement actions, the state bailiff imposes a seizure on the property with the participation of the debt collector when taking measures to establish the location and identify the debtor's property. Seizure of property is carried out on the basis of decisions made. An attempt to avoid seizure of accounts, for example, by opening new ones, may lead to criminal liability of the responsible persons from among the company's officials.
Legal service "Consultant" provides all types of legal services, including online legal services. Specialists of our service will make a legal analysis of the situation for carrying out the rehabilitation procedure and will help to collect the necessary documents and, if necessary, accompany the court proceedings.
