LIQUIDATION OF THE LEGAL ENTITY IN UKRAINE

The liquidation of the legal entity is largely labour-intensive and require in-depth legal knowledge and training. Consider this question from the point of view of the domestic legislation. It should be noted that in the Economic and Civil codes there is no concept of "liquidation of legal entities".

We can also say that the liquidation of the legal entity is regulated by the law procedure, which results in the termination of the legal entity. Also, distinction should be made between liquidation of legal entities in connection with the termination of activity and liquidation of legal entities in connection with the bankruptcy.

There are some differences on procedural aspects of the liquidation and legal bases of its implementation. Liquidation as one of the types of activity termination legal entity, provided for in article 110 of the Civil code of Ukraine.

It States that a legal entity is liquidated:

1) by decision of its members or of the legal entity's body, authorized for this by the constituent documents including in connection with the expiration of term for which created a legal entity, achieve the purpose for which it was created, as well as in other cases stipulated by the constituent documents;

2) by a court decision on the recognition by the court as invalid of the state registration of a legal entity via an approved when creating violations that cannot be fixed, and in other cases established by law.

That is, the Law clearly distinguishes two paragraph of this article, governing the liquidation of a legal entity. Also, the elimination provided for in article 59 of the Economic code of Ukraine. 6 of article 59 of the HC of Ukraine the entity is liquidated:

* at the initiative of founders of economic entities or their successors;

* in connection with the termination of the period for which it was created, or in the case of achieving the purpose for which it was created;

* in the case of recognition in the prescribed manner to the bankrupt, except in cases provided for by law;

* in case of cancellation of its state registration in cases provided by law.

It should be noted that a key difference with the elimination of the reorganization is the fact that as a result of the elimination of the business entity of its rights and obligations are terminated and cannot be transferred in succession.

This is very important. It is necessary to pay attention to and the procedure of liquidation of legal entity. It can take place voluntarily and under compulsion.

Legal regulation of liquidation procedure of legal entities is carried out by norms of the Civil and Commercial codes, laws of Ukraine: "On state registration of legal entities and physical persons-entrepreneurs", "On business associations".

To accompany the above procedures, You can contact one of our offices.