What if the shareholders breach their obligations? What if your company does not have an executive or does not have a legal seat?

Here below we bring you some info about the consequences of not respecting your obligations of a shareholder.

A company shall be wound up:

(a) on expiry of the period of time for which it was formed;

(b) on the date specified in a resolution of the members (partners, shareholders), or the competent organ of the company, as the day on which the company will be wound up; otherwise, on the date when such a resolution was adopted, if the company’s winding-up is connected with liquidation;

(c) on the date stated in a judicial order winding up the company; otherwise, on the date when such judicial order (decision) comes into legal force;

(d) on termination of a bankruptcy order upon implementation of the distribution schedule, or on cancellation of a bankruptcy order because the bankrupt’s assets are insufficient to cover the costs of bankruptcy proceedings; on dismissal of a bankruptcy petition due to a company’s lack of property,

(e) due to another reason,

On the basis of a motion by a state authority, or by a person who has proved a legal interest, the court may rule on the winding-up of a company and its liquidation in the following instances:

(a) if no general meeting has been held in a calendar year, or if the company’s organs whose term of office (or whose members’ term of office) terminated more than 3 months previously were not elected in the preceding year, unless this Code stipulates otherwise,

(b) if the company is no longer authorized to undertake business activity;

(c) if the company has breached the duty to create a reserve fund;

(d) if the company has failed to fulfil the duty consisting in submitting the balance shett to the Collection of Deeds for last two accounting periods

We are glad to provide you our services.

Contact us

Related posts:

Show Buttons
Hide Buttons