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Liquidation is one of the forms of termination of a legal entity.

In accordance with Article 110 of the Civil Code of Ukraine, a legal entity is liquidated:

1. by the decision of its participants, the subject of the management of state or communal property or the body of a legal entity authorized to do so by the constituent documents, including in connection with the expiration of the term for which the legal entity was created, the achievement of the purpose for which it was created created, as well as in other cases provided for by the founding documents;

2. by a court decision on the liquidation of a legal entity due to violations committed during its creation that cannot be eliminated, by a claim of a participant of a legal entity or a relevant state authority;

3. by a court decision on the liquidation of a legal entity in other cases established by law - by a lawsuit of the relevant state authority.

According to Article 110 of the Civil Code of Ukraine, the grounds for termination of a legal entity by a court decision may be the following circumstances: invalid state registration of a legal entity, recognition of a legal entity as bankrupt, a lawsuit by a participant of a legal entity or a lawsuit by the relevant state authority. Also, reasons for the liquidation of a legal entity by a court decision may be illegal activity, discrepancy in the size of the authorized capital, non-submission of financial tax reporting during the year, as well as detection of signs of fictitious activity of a legal entity.

If you do not agree with the court decision on the liquidation of a legal entity, it is possible to appeal it in the appellate and cassation procedures.

Regarding the protection of workers' rights during the liquidation procedure

According to Clause 1 of Art. 40 of the Labor Code, an employment contract concluded for an indefinite period, as well as a fixed-term employment contract before the expiration of its validity period, may be terminated by the employer only in the case, in particular, in the event of a change in the organization of production and labor, including liquidation, reorganization, bankruptcy or repurposing of the enterprise, institutions, organizations, reducing the number or staff of employees.

Dismissal under Clause 1 of Art. 40 of the Labor Code is conducted with the provision of guarantees, benefits and compensations provided for in Chapter III-A of the Labor Code. You can learn more about them at the link https://zakon.rada.gov.ua/laws/show/322-08/conv#n324

According to the current legislation, it is not possible to exclude the period of warning of the employee about his future dismissal (not less than 2 months in advance) in case of his stay on vacation or temporary incapacity. In a situation where the warning period was not observed, and if the employee is not subject to return to work for other reasons, the court sets a new date of dismissal, taking into account the period during which he worked after receiving the warning.

If you need help in appealing the decision on the liquidation of a legal entity, please contact us.