Company Liquidation in Slovakia
Company Liquidation in SlovakiaUpdated on Monday 22nd April 2019
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How can a company be liquidated in Slovakia?
The main regulations that must be followed by a company that’s willing to be liquidated are stipulated in the Commercial Code. The liquidation is possible only if there are any assets left to cover the claims and debts of the company. There are two types of liquidation recognized by the Slovakian Commercial Code: voluntary or enforced. All the companies in the stage of liquidation have the termination “v likvidacii“(in liquidation) attached to their names. Our solicitors in Slovakia can offer you more information about the regulations related to the company liquidation procedure in this country.
What are the steps for company liquidation in Slovakia?
The decision of the voluntary liquidation in Slovakia must be taken during the annual general meeting. The reasons are various:
- - the expiration of the availability date of the company;
- - the accomplishment of the company’s goals;
- - the decision that there is no reason to carry on with the business.
During this meeting a natural person called liquidator is appointed to carry on the liquidation procedures and take all the duties and responsibilities of the former management structure. The liquidator may be recalled by the Court and replaced if a valid petition from the shareholders is submitted. For more information about the voluntary liquidation, please contact our law firm in Slovakia.
The enforced liquidation is decided by the Court and comes at the request of the creditors or if the company has broken the law.
The decision of liquidation along with the name and details of the liquidator are registered with the Commercial Register and an announcement must be published in the Trade Journal (Obchodný vestník). The announcement must contain the address where the claims can be submitted, the content of the claims and the time limit for depositing these claims. The creditors’ claims are checked by the liquidator and covered in full if it is valid.
The shareholders are receiving liquidation shares (parts of the liquidation remainder), according to the nominal value of their shares. The Memorandum of Association’s provisions must be respected at this point. A plan of distribution for the liquidation remainder must be approved by a general meeting of the shareholders and it’s followed by the payment of the liquidation shares. The payment is made after the shareholders are returning the original certified shares to the company. These returned certificates are being destroyed by the liquidator.
After this last step, the company may cease its economical activities and can be erased from the Commercial Registers but only based on the proof that all the shares were destroyed. If you need assistance during the entire process of company liqudation in Slovakia, our local lawyers are at your disposal.
How long does it take to liquidate a company in Slovakia?
There is no standard term for company liquidation in Slovakia, this depends usually on the company dimension, on the number of claims, on the number of creditors and may take up to several years. Do not hesitate to ask for the help of our Slovak solicitors who can handle for you the company liquidation proceedings.