Company liquidation

Liquidation is the process of liquidating the assets of a dissolved legal entity in order to settle debts with creditors and issue the liquidation surplus to shareholders.

Liquidation is carried out to liquidate a dissolved legal entity’s assets (the liquidation estate), to settle debts with creditors, and to dispose of the net asset balance resulting from liquidation (the liquidation surplus).

A legal entity enters into liquidation on the date on which it is dissolved or annulled. Over the duration of liquidation proceedings a legal entity uses its name with ‘v likvidaci’ [‘in liquidation’] suffixed to it.

Reasons for initiating liquidation

Appointment of a liquidator

Removal or resignation of a liquidator

Eligibility to be a liquidator

Obligations of a liquidator

Realisation of the liquidation estate and satisfaction of creditors’ claims

Final liquidation report

Disposal of the liquidation surplus

End of liquidation

Removal from the companies register

Renewal of liquidation