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Corporate Service - China

Question

Q&A Regarding Enterprise Deregistration (2)

Answer
Q:
When does the company need to be liquidated?
A:
After the company makes a resolution on dissolution, it shall be liquidated. Except for dissolution due to merger or division, liquidation shall be carried out when the company is dissolved.

Q:
What is the purpose of company liquidation?
A:
The important content of company liquidation is to liquidate the company's assets, settle various debts and terminate existing legal relations. The purpose of liquidation is to protect the interests of creditors, shareholders and public interests.

Q:
What are the procedures for company liquidation?
A:
  1. Establish a liquidation group;
  2. Release the information of the liquidation group and the announcement of creditors;
  3. Carry out liquidation activities;
  4. Distribute company property;
  5. Prepare liquidation report.

Q:
When should the company establish a liquidation group?
A: The company shall establish a liquidation group within 15 days from the date of occurrence of the cause of dissolution, which shall be responsible for clearing up the company's property, creditor's rights and debts.

Q:
Who are the members of the liquidation group?
A: The liquidation group of a limited liability company is composed of the company's shareholders (if the company's shareholders are legal persons, relevant personnel may be assigned to participate in the liquidation), and the liquidation group of an incorporated company is composed of directors or persons determined by the general meeting of shareholders. If a liquidation group is not established for liquidation within the time limit, the creditor may apply to the people's court to designate relevant personnel to form a liquidation group for liquidation.

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