Company Liquidation in Finland
Company Liquidation in FinlandUpdated on Wednesday 04th May 2022
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How can a company be liquidated in Finland?
A Finish company can be liquidated if the members take this decision during a general meeting. The main legislative act which regulates all the activities related to the liquidation is the Finish Companies Act.
During the process of liquidation the assets of the company are converted into cash, all the debts are paid and the remaining assets are distributed among the shareholders according to the Articles of Association.
What are the steps for company liquidation in Finland?
The liquidation process of a Finnish company starts with a general meeting where the decision is approved and a liquidator is appointed in order to carry on with the company’s activities related to the liquidation. The liquidator can be appointed by the Finish registration authority in case the members haven’t already appointed one.
In the beginning, the balance sheet of the company must be drawn up by the liquidators with the help of the former management board and audited by its auditors (if there are any).The balance sheet must be presented in front of the general meeting of the shareholders along with the liquidator’s observations regarding the way the claims should be submitted and covered.
The liquidator can act in the name of the company only if its actions are helping the process of liquidation.
The creditors of the company are announced regarding the liquidation and invited to deposit their claims. Only after covering all the claims the remaining assets are distributed among the shareholders. When a debt is disputed the funds necessary to cover it are put aside until the situation is clarified.
The liquidator must submit financial statements and annual reports to the Ordinary General Meeting for each financial period.
The last balance sheet must be accompanied by the report indicating the distribution of the company’s assets, annual reports and auditor’s reports at the last General Meeting of the Shareholders. These reports must be verified by the company’s auditors but no later than a month from their elaboration.
After presenting the final reports to the general meeting, the liquidators require the deletion from the registers.
Within three months from the distribution of assets the claims regarding the distribution of assets can be raised. After a period of five years a share not claimed by anybody is declared lost.
How long does it take to liquidate a company in Finland?
The process of liquidation of a Finish company is conditioned by many factors such the existence of debts that has to be covered, by the claims brought to the process of distribution of assets and other. The usual process doesn’t take longer than a half of year but it can be extended to several years.
There is also a possibility to discover new assets. In this case the process of liquidation is reinitiated but only there are enough funds to cover the liquidation expanses. In case you need other legal services, such as immigration assistance in Finland, our lawyers are at your disposal.