Consequences of liquidating a

24-Sep-2017 04:13

If there is only one shareholder the plan of distribution is not necessary.

The final account and the plan of distribution must be deposited at the company's office, if such office still exists, and must be filed with the Trade Register of the Chamber of Commerce.

To avoid any of the above consequences Directors may like to look at other options such as Company Voluntary Arrangements (CVA) or pre-pack phoenix process to retain control.

In any event it is vital that businesses take qualified and experienced insolvency advice before choosing a course of action to ensure that the safest route is taken.

Below we will elaborate on the legal procedure for the liquidation of a Dutch BV and the Dutch tax implications of such a liquidation.

The following topics will be discussed: The legal procedure for the liquidation of a Dutch BV The procedure for the liquidation of a Dutch BV is described in Dutch corporate law and specified in the company's Articles of Association.

The liquidator prepares a final account of the liquidation ('rekening en verantwoording"), and if there are multiple shareholders a plan of distribution ("plan van verdeling").

The plan of distribution describes the way the company's assets and liabilities are divided between the parties entitled thereto.

Compulsory liquidation – the first stages of insolvency could end up being merely a precursor to a liquidation of the assets of a firm if the practitioner cannot find a buyer of a way to keep the business trading.

Withdrawal of support from suppliers and customers – nothing travels as fast as bad news and insolvency may also be a trigger event, entitling suppliers and customers to take protective measures under contracts with the company.