Legal regulation of the liquidation of a business company

Resumé Liquidation of a company is the process whereby the life of a company is brought to an end and by which its property should be administered for the benefit of its members and creditors. Most of the liquidations occur because a company has cash flow problems and can't pay its debts. The liquidation of a company occurs in the Czech Republic between the winding-up and dissolution of a company. The legal regulations of liquidation can be found in the Commercial Code (Act No. 513/1991 Coll., as amended). A company becomes dissolved on the day it is deleted from the Commercial Register. The dissolution of a company is preceded by it's winding-up. A company should be wound-up with the liquidation, unless the law provides for otherwise. A company comes into liquidation at the day it is wound up. During the period when the company is in liguidation, it's commercial name shall be followed by the words "in liquidation". The main person who takes control of the company is the liquidator. The powers of the statutory organ to act in the name and on behalf of the company shall pass to the liquidator on his appointment. The liquidator shall execute only legal transactions which relate to the company's liquidation. Liquidation shall be completed by distribution of the liquidation remainder. After completing..