Company liquidation in Montenegro is the cessation of business operations. The process is covered by the Law on Business Organization, the Law on Bankruptcy and Insolvency of Insurance Companies, the Business Organization Insolvency Law, and the Law on Bank Bankruptcy and Liquidation Proceedings. The law which governs will depend on the type of liquidation conducted and the kind of company liquidated. Our specialists in company formation in Montenegro can conduct a company liquidation procedure for you.
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Liquidation under the Law on Business Organization
Under the Law on Business Organization, a company may be liquidated voluntarily. Companies can conduct voluntary liquidation in Montenegro as long as the financial resources of the business exceed its debts. This means that the company is able to pay off all its debts using its existing assets. The articles of association must provide for voluntary liquidation after the happening of a specified event or after a certain number of years since the company was formed. The decision can also be made through a meeting of the shareholders. Our experts in Montenegro company formation can guide you through this process
Law on Bankruptcy and Insolvency of Insurance Companies in Montenegro
If you open a company in Montenegro engaged in the insurance business, the Law on Bankruptcy and Insolvency of Insurance Companies governs the liquidation process. Company liquidation in Montenegro for insurance companies is commenced when the Insurance Supervision Agency of Montenegro has assessed that the business is no longer improving and has not complied with the solvency requirement or has not performed all its obligations.
Montenegro Law on Bank Bankruptcy and Liquidation Proceedings
This law specifically governs the liquidation of banks in Montenegro. The body in charge of liquidating banks is the Central Bank of Montenegro. Before the actual liquidation process, the bank shall first be rehabilitated. This means that certain measures are imposed and adopted to try to save the bank from insolvency. If the bank is still unable to remain solvent after the rehabilitation process, liquidation commences.
Business Organization Insolvency Law in Montenegro
If you open a company in Montenegro and it does not gain as much profit as you hoped it would, you have the option of liquidating it. The process of company liquidation in Montenegro under the Business Organization Insolvency Law in Montenegro involves the jurisdiction of the courts. This usually happens when the company can no longer pay its debts. A petition has to be filed with the Commercial Court by either the debtor or the creditor.
If you need assistance in the liquidation of your company in Montenegro, please do not hesitate to contact us. Our experts in company formation in Montenegro have handled many liquidation cases.