Liquidation is a procedure in which a company or financial association settles and dissolves.
How is a company liquidation carried out?
This process is initiated through a liquidation decision and process. For a limited company, such a decision is taken by the Annual General Meeting, and for an economic association it is taken by the members of the association. It can also be taken by the Swedish Companies Registration Office or the district court. We can assist with a liquidator. This ensures that the company’s or association’s debts are paid and that the surplus is distributed to the owner(s).
The liquidator represents the company on the board. The Annual General Meeting has the same position as before the liquidation decision unless otherwise specifically governed by the Companies Act.
The Board and the CEO shall report their liquidity management to the liquidator daily. An interim report can be prepared if the unrecognised period relates to a short time during the current fiscal year, otherwise an annual report must be prepared. It is important that these actions are taken urgently for the liquidator to quickly assess the company’s financial position.
Shortly after the liquidation decision, the liquidator of the Swedish Companies Registration Office applies for a call for the company’s unknown creditors. The application must be accompanied by a list of known creditors. The unknown creditors have six months from the Swedish Companies Agency’s announcement to report their claims to the liquidator or they can no longer make their claim against the company. However, a claim that has been known to the company can be claimed against the company despite the calling procedure.
We who work with insolvencies and business settlement
We have our base in western Sweden with offices in Gothenburg and Kungsbacka. We take assignments throughout Sweden and also internationally.