Quick liquidation, express liquidation

Quick liquidation, express liquidation is the replacement of a participant (owner) and managers with other, usually fictitious, persons, and is not actually liquidation.

The main advantage of express liquidation is that the director and owners of the enterprise cease to be a responsible person in a few days, the legal address, contact details, name of the legal entity can be changed, and allegedly this deprives former managers of responsibility and allows closing the enterprise without inspections and settlements with creditors.

After such an express liquidation, you lose control over your company. Trials and investigative actions will be conducted without your participation. And so on until the time comes for personal responsibility of officials for their actions.

In the best case «the new manager» simply will not do anything and will not protect the interests of the enterprise.

At worst, within the framework of proceedings to impose responsibility on certain officials, this "new manager" will be found and will provide an explanation that he is a fictitious person and has never received effective control over the enterprise, which, in particular, can be confirmed by the absence of reissued invoices, the lack of electronic signatures, submitted reports, and so on.

In case of inaction of the new manager, disputes about debt collection may be considered, or previously concluded agreements may be challenged, and the facts or circumstances that will be established without your participation will be final and cannot be reviewed.

Legal liability, whether criminal or civil, economic and legal, is always imposed on a specific person for certain actions, and the re-registration of the enterprise to a new owner with the appointment of a new manager does not deprive the former managers of joint and several liability to the creditors of the enterprise. More details about joint and several liability can be found on the pages Debt collection from legal entities and Bankruptcy – protection of creditors' interests.

In our opinion, express liquidation, quick liquidation is a bad offer for the client and we do not offer such services.

For the liquidation of a legal entity, we insist on the application of the general liquidation procedure, or liquidation within the framework of a bankruptcy case. You can get more detailed information after a free consultation.