What are the methods of official liquidation of company in Estonia?
Today, Estonian companies can be liquidated in two main ways – by force or voluntarily.
Voluntary liquidation is performed in the following order:
Shareholders of the enterprise at a general meeting render a verdict that the company must be liquidated. But if it is a private firm that has not issued securities to the market, the director (or the board of directors) makes the verdict. In order for the decision to be made and entered into force, more than two thirds of the votes must be cast during the voting.
After the verdict and keeping it up for voting by the board of directors or shareholders, the management of the company is charged with the task of preparing a special document. This certificate should contain information about the activities carried out by the company being liquidated.
The terms sufficient for the satisfaction of existing claims from other companies and legal entities (for example, the fulfillment of debt obligations to the creditor, etc.) are determined.
A company can only be liquidated by complying with the following criteria:
- The company did not hold the board of directors or the general meeting of shareholders for a period that exceeds 2 calendar years.
- For two years, no election process was held in the ruling council.
How is this procedure?
After a decision is taken on a vote in a voluntary liquidation or by a court decision in the event of a forced liquidation, a notification is sent to the specialized authority on the commencement of liquidation of the enterprise. This document is accompanied by a protocol of voting.
A liquidator is appointed (the official responsible for monitoring the company’s liquidation process).
Liquidator develops the company’s final balance sheet. This information is displayed during the general meeting of the company.
In the register of commercial organizations filed a petition for deleting the company from this list.
The whole operation takes from eight months to a year.
Our company’s lawyers are leading experts in the field of international financial law with many years of practical experience. We have contributed to the successful liquidation of hundreds of companies around the world (with minimal loss of assets, and in some cases with their full preservation). We will prepare all the necessary documents for you and provide you with full support at all stages of the official liquidation of company in Estonia
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