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Official liquidation

This procedure is thoroughly laid out in the Civil Code and in short can be described as follows: the founders make a resolution to wind-up, inform the tax authorities of the liquidation, appoint a liquidator or a liquidation commission, publish a notice of liquidation, field tax inspection of the last 3 years records is appointed, and after the inspection either debt collection takes place or the indebtedness is recognized uncollectable. After that an interim liquidation balance sheet is prepared and submitted to registering tax authorities, claims of first and subsequent priorities creditors are satisfied, measures are undertaken in order to recover debtor indebtedness. After the claims of all creditors have been satisfied the remaining assets, if any, are distributed among the founders and the company stops existing.

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