Advantages and disadvantages of liquidation in a new way

22. 9. 2020

The amendment to the Commercial Code will bring with it several changes. We have already published two articles on this topic with useful information, which you can find HERE and HERE. The mentioned amendment also brings with it changes in the liquidation of the company, therefore we have decided to write for you the advantages and disadvantages that liquidation brings with it in a new way.

Disadvantages of liquidation from 1st of October 2020:

1. The liquidation shall begin from the moment the liquidator is registered in the Commercial Register and not from the company's decision.

2. The liquidator will be able to be only the administrator of the bankruptcy estate or a natural person who has a registered residence in Slovakia, t. j. not a company manager who resides in an EU member state.

3. The company will be obliged to deposit an advance payment for the liquidator's remuneration in the amount of EUR 1,500 in the notary custody before the liquidator is registered.

4. The entry of the company into liquidation will invalidate the power of attorney, proxies, and powers (except for power of attorney in court).

5. The liquidator will be obliged to draw up a list of claims and deposit it in the Collection of Documents. The liquidator will be obliged to keep a list of receivables throughout the liquidation.

6. The liquidator will be obliged to draw up a list of assets and deposit it in the Collection of Documents.

7. The minimum duration of liquidation is extended from 3 months to 6 months. If the liquidator finds that the company has a tax arrears, it will be possible to complete the liquidation after 12 months.

8. The liquidator will be obliged to announce in the Commercial Bulletin a notice of the end of the liquidation. The court fee for notification will be 20 EUR.

9. The liquidator will be obliged to announce in the Commercial Bulletin a notification that the financial statements, the final report of the liquidator and the proposal for the distribution of the liquidation balance have been approved. The court fee for notification will be 20 EUR.

Advantages of liquidation from 1st of October 2020:

1. The company will not need the consent of the tax administrator with the deletion from the Commercial Register.

2. Fiction of approval of the financial statements, the final report of the liquidator and the proposal for the distribution of the liquidation balance after 60 days from its publication in the Commercial Bulletin.

3. If you decide to enter into liquidation by 30.09.2020 and you submit the application for registration to the court by 30.09.2020, you will not be obliged to deposit in notarial custody an advance on the liquidator's remuneration in the amount of EUR 1,500.

We believe that the information provided is useful to you in deciding what to do next. However, if you need advice on this issue, do not hesitate to contact our experts, who will be happy to provide you with more detailed information. Visit our website, Facebook or Linked-In and find out more about our services and services.

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