Attorney Dragana Djordjevic » "Liquidation" (2)

Liquidator

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The liquidation of a company shall be conducted by liquidators. These are the persons who conduct the company’s business during the liquidation, represent the company (legal representatives of the company in liquidation) and they are responsible for the legality of operations of the company.

The Companies Act regulates the appointment and removal of the liquidators, as well as their rights, duties and responsibilities.

Appointment and Removal of the Liquidator

A company appoints a liquidator in the decision on initiating liquidation. The decision on initiating liquidation shall be made Continue reading Liquidator →

Tax aspect of liquidation of companies

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Tax aspect of liquidation of companies have their own specific characteristics in relation to the general corporate tax regime.

The most common tax questions which arise regarding the tax aspect of liquidation of companies are:

  • assessment of tax on corporate profit of companies in liquidation and
  • tax treatment of payments of the liquidation surplus.

Assessment of tax on profit of companies in liquidation

Generally according to the provisions of Article 34 of the Corporate Profit Tax Law, taxpayer’s profit in the process of liquidation shall be taxed in accordance with that law. Continue reading Tax aspect of liquidation of companies →

Voluntary liquidation of the company – legal aspect

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According to provisions of Article 468 of Law on Business Companies, business company shall be dissolved by deletion from the register of economic operators in case of:

  • Liquidation or forced liquidation in accordance with this Law
  • Bankruptcy proceedings in accordance with the law governing bankruptcy and
  • A status change resulting in the dissolution of a company.

Liquidation of the company is the process of dissolution of the solvent company and can be: voluntary and forced.

Voluntary liquidation of the company is run by the decision of the owner of the company, as opposed to the forced liquidation, which starts in the cases provided by law Continue reading Voluntary liquidation of the company – legal aspect →