Overview Comment The liquidation of a limited liability company (LLC) is undoubtedly a complicated and lengthy process, but nonetheless includes many safeguards to guarantee the rights and obligations of the company with regard to third-party debtors and creditors.
The registrar can request additional information or discuss matters with the LLC's general assembly to ascertain the reasons.
If the registrar has verified that the reasons for liquidation are not fraudulent or unlawful, it will issue the LLC's liquidation decision and appoint a liquidator within 10 days of verification.
The registrar will communicate this decision to the LLC, which must then publish the decision in the Bulletin of the Registrar of Companies and one daily newspaper.
Once notified of the liquidation decision, the LLC must stop making changes to its membership or assuming new obligations.
However, it will continue to operate insofar as it will continue to fulfil its obligations under the liquidation process.
The LLC will retain its corporate status during the liquidation period, provided that it states that it is under liquidation whenever its name is mentioned.
Any interested party has the right to confirm before a competent court any financial obligation that the LLC has taken on in six months before the issuance of the liquidation decision.
As soon as he or she is appointed, the liquidator must: Within 10 days of his or her appointment, the liquidator will put an ad in two local newspapers requesting the company's creditors and anyone that holds claims to meet at a fixed date and place in order to settle the debts and claims on the company, without impinging on the rights of any party to launch legal proceedings.
The liquidator must then submit a report to the registrar on the progress of the liquidation process.