Liquidation of companies, bankruptcy
As an international consulting company,ALPS& CHASE solves corporate matters of the clients within the support of their businesses in CIS and Baltic countries on a daily basis.
One of the frequent questions raised by the clients is: what to do with a company, when it stops generating profits or accumulates debt, and business becomes unprofitable?
There are various mechanisms of termination or suspension of operations of a legal entity in different countries applied depending on the client’s wishes and a particular case.
VARIANTS OF WINDING-UP OF A COMPANY
As a rule, our experts offer several variants of liquidation:
Voluntary official liquidation.
In case of such liquidation, a company undergoes all kinds of audits over the past three years and is officially deleted from the register of legal entities. The main disadvantage is the term of liquidation and possible time and money consumption.
It is applied in case of unwillingness or inability to undergo various audits. A head or an owner of a company is replaced, or a company is consolidated (merged) with other business entities.
In different countries the procedure of bankruptcy is significantly different in terms, measures taken, stages of bankruptcy. Winding-up of a legal entity can be voluntary or subject to court decision. In case of bankruptcy, one has to build a strategy of actions and clarify the details of work of court-appointed receivers.
Each variant of liquidation has its pros and cons. Taking account of a company’s history, presence or absence of debt, and purposes, an organizational plan of liquidation or bankruptcy is structured for each client on a case-by-case basis.
At that, data on the assets/liabilities structure, accounting records are analyzed, owners and directors are consulted on matters of possible bringing to subsidiary liability, and ways to protect them.
SUSPENTION OF COMPANY’S OPERATIONS
In some CIS and Baltic countries, in case a company does not carry out any operations, it can be suspended for a certain number of years and then liquidated according to the simplified procedure.
Besides, along with liquidation of a company, we render the associated services: taking cash off the books, taking off the funds etc.