On September 1 of this year, amendments to the Civil Code entered into force, according to which, upon the initiative of the Registry Center, if a legal entity registers the legal status “initiated liquidation”, this status can be revoked by applying directly to the Registry Center instead of the court.
“For the past several years, the Registry Center has been actively and successfully implementing the initiative to deregister inactive legal entities from the Register of Legal Entities. A company or organization may be subject to liquidation proceedings if it is more than a year late in submitting its annual financial statements or does not provide any information about itself for more than five years. Until now, legal entities could cancel such status only by applying to the court, and from now on it will no longer be necessary, it will be enough to apply to the Registry Center and submit documents refuting the circumstances that led to the initiation of the liquidation procedure”, says Jolanta Kazlauskienė, head of the Center for Registration of Persons at the Registry Center.
She emphasizes that, as before, in order to cancel the initiated liquidation, it will first be necessary to eliminate the circumstances that led to the initiation of the liquidation procedure – to submit financial statements or update personal data.
“When the liquidation procedure was initiated due to unsubmitted financial statements, it will be enough for the legal entity to submit financial statements and the legal status of “initiated liquidation” will be deregistered. Well, if the liquidation was initiated due to data not being updated for a long time, for example, the obligation to submit annual financial statements for partnerships or individual companies, then documents for registering data changes must be submitted to the Registry Center, and in cases where the data has not changed, a notification that the legal entity is performing activities”, explains J. Kazlauskienė.
It is possible to apply to the Register Center for the cancellation of the legal status “initiated liquidation” within 12 months from the registration of this status. If this is not done within the specified period, the legal entity is liquidated and de-registered from the Register of Legal Entities.
Thousands are being liquidated
A creditor of a legal entity registered under the legal status of “initiated liquidation”, who seeks to have the procedure against the legal entity no longer continued and such a legal entity not to be deregistered from the Register of Legal Entities, remains obliged to apply to the the court with a lawsuit regarding the fulfillment of the debtor’s obligations or the initiation of an insolvency case.
In addition, the right to apply to the court within one year from the registration of legal status is granted to a creditor who has an executive document issued in his favor, which is not fully executed.
According to the data of the Registry Center, about 14,000 companies currently have the legal status of “initiated liquidation”. legal entities, this year alone the liquidation procedure was started for more than 9 thousand. legal entities. Currently, a total of 230.5 thousand are registered in the Register of Legal Entities. legal entities.
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2024-09-21 01:56:12
