Reorganization, Liquidation and Bankruptcy of Legal Entities
The legal assistance in the process of preparation of documents on reorganization, closing, and bankruptcy of the company should be carried in accordance with law and by international standards.
Reorganization, liquidation and bankruptcy of legal entities shall be regulated in accordance with the law. As it is specified in the law, reorganization of legal entities is carried out in the form of mergers, joining, division, separation and transformation.
Reorganization of a legal entity
Reorganization of a legal entity may be carried out at the decision of the founders of a legal entity or the authorized body. In cases specified by law, the separation or reorganization of a legal entity in the form of separation of several legal entities is carried out by a court decision. There are the following forms of the reorganization of companies:
- Accession
- Merger
- Transformation
- Division
- Separation
The rights and obligations of the companies to the creditors during the merger, joining and transformation process is passed on to the legal successors under the transfer act. In the case of division and separation, it moves to newly created companies based on the balance sheet.
Rules for liquidation of legal entities
The rules for liquidation of legal entities are regulated by the Civil Code of the Republic of Azerbaijan. Thus, its existence, rights and duties are carried out in the order of succession without cessation to other persons.
According to Article 59 of the Civil Code, the registration of a legal entity may be grounds for cancellation of a legal entity if its registration is invalid by a decision of the founders or a statutory body.
The bankruptcy of legal entities
A legal entity is declared bankrupt based on a court decision. This happens when the legal entity fails to meet the creditors' demands. The Law of the Republic of Azerbaijan “On Bankruptcy” states that the petition of the creditor or debtor to the court is the basis for the bankruptcy case. The filing of that petition is a milestone in the history of the bankruptcy proceedings. Bankruptcy lawsuits may be filed with the court based on a decision taken by the management body of the debtor.
This law does not apply to banks and legal entities.
The law also states that legal entities and natural persons represented by the state may file a lawsuit on bankruptcy. If the debtor is an individual borrower, the application is submitted by him/her or his/her representative.
In special cases, the debtor's bankruptcy process can be initiated without their involvement.
Legal services related to reorganization, liquidation and bankruptcy of the Company
You can trust us with legal procedures for the reorganization, liquidation, and bankruptcy of your company. Our professional lawyers will provide you with the right legal assistance in implementing procedures for liquidation and bankruptcy.
