Judicial liquidation reasons include those determined by the court after the criminal or civil proceedings.
As part of the criminal procedure, a security or protective measure prohibiting the performance of activities can be imposed on the company. After its pronouncement, the company must change its activity or start a voluntary liquidation procedure. The compulsory liquidation procedure is initiated if the company does not do so.
The Law on the Liability of Legal Entities for Criminal Offenses also allows for imposing a penalty of termination of the company. After delivery of the decision, the company must initiate the voluntary liquidation procedure within 30 days; otherwise, the Serbian Business Registers Agency initiates the compulsory liquidation procedure.
There are three reasons for liquidation related to the court’s decision in civil proceedings:
- Established invalidity of the founding act
- Established invalidity of establishment registration
- Ordered the termination of the company following the Companies Act. Continue reading Termination of a company by a court decision