Luterkort Advokatbyrå has many years’ experience of handling liquidations. Liquidation may be voluntary, following a decision made by a meeting of shareholders in the company, or compulsory, when so ordered by the Swedish Companies Registration Office. A compulsory liquidation is normally ordered when a company does not have an authorised Board of Directors or an auditor, or when some other similar situation exists.
A receiver, normally a lawyer, is appointed to oversee the liquidation. If the receiver is able to determine that there are assets in the company, an advertisement for creditors is published to establish a picture of the total outstanding liabilities of the company. The company is then wound up in an orderly manner to avoid bankruptcy. It is especially important to realise that a voluntary liquidation can be a way of avoiding personal liability for any future obligations that the company incurs. A voluntary liquidation is normally preceded by the preparation of a statement of affairs, which is a special type of balance sheet.