There are many reasons that drive company and project owners to liquidate their companies, especially under difficult circumstances that sometimes affect the country or the world as a whole. These situations may lead companies into financial crises, forcing owners, reluctantly, to abandon their activities. Owners resort to liquidation when a project is unable to generate profit, when the company cannot compete in the market, to dissolve partnerships between owners, or sometimes by a court decision ordering the liquidation of a company in specific cases.
Frihat Lawyers & Consultants has a specialized team in corporate law and liquidation. The team follows all legal procedures required to liquidate a company by assessing the company’s situation, preparing studies on profits and losses with the help of specialists, and managing the full liquidation process before the Companies Registrar at the Ministry of Economy, ensuring compliance with the applicable Companies Law.
Article (262) of Decree-Law No. (42) of 2021 on Companies states:
- The company must notify the Companies Registrar of the liquidation decision, attaching the liquidation announcement, within fifteen days from the date of the decision.
- The Companies Registrar must publish the liquidation decision and announcement on the Companies Registry website upon receipt.
- The liquidation procedures commence on the date the Registrar publishes the liquidation decision and announcement.
The Frihat team follows the liquidation procedures of its clients’ companies from the start until the completion of the process, including monitoring all procedures with the competent authorities and the Ministry of Economy.