How bankruptcy of legal entity is disclosed?
It is known that bankruptcy of legal entity can be recognized if it (face) has no opportunity to satisfy creditors according to their requirements concerning monetary payments and this debt is not repaid in three months. The fact of bankruptcy is admitted by commercial (arbitration) court. Also the person can independently submit the application. Such bankruptcy is called voluntary.
What procedure of bankruptcy of legal entity, its feature
Of course, bankruptcy of legal entity has the specific procedure. Who can begin it? This is the state prosecutor, the debtor's creditor, the owner of the state legal entity, any interested party (for example, special purpose fund, tax authority and others), the founder or the debtor's participant and also the head of the legal entity (executive body). Usually the procedure of bankruptcy of legal entity leads to recognition of insolvency by court. If the sum of the general debt does not exceed 500 minimum compensations, then the arbitration court adopts the statement. Later signs of bankruptcy of legal entity are considered and the final verdict is rendered. It is forbidden to address the debtor the interests in a private order, the applicant is represented by a meeting of creditors. After adoption of the statement the court undertakes to consider case within three months. All features of bankruptcy of legal entity are studied, nuances are considered. However the court has full authority to delay business for the term of about two months.
Main issue: what signs of bankruptcy of legal entity and subtlety of the procedure?
The legal entity which within three months after approach of date of payment of debt does not fulfill the financial obligations can be declared bankrupt. Observation, bankruptcy proceedings, the settlement agreement and external management are the main procedures of bankruptcy. The purpose of the procedure is the termination of the legal entity at bankruptcy through merge or reorganization. It is observed the debtor since that moment when the court adopted the statement for recognition of insolvency. The interim manager undertakes to perform all functions of the head, however for him certain restrictions are introduced. Observing also appoints arbitration court.
External management at bankruptcy of legal entity as one of the main procedures
The arbitration court enters external management for the term of no more than twelve months. Such decision is made by meeting of creditors. Extension for six months, but is possible no more. The external managing director appointed by court carries out this option of management. The head at the same time is discharged of duties. The interim manager undertakes powers of all governing bodies, manages accounts department, balances, documentation, disposes of the seals and stamps. On meeting requirements of creditors the moratorium is imposed. As a result the court can make the decision on the termination of bankruptcy and the beginning of payments of debts to creditors or to declare the debtor a bankrupt and to open bankruptcy proceedings. Also the peace agreement can be approved. The last consists at any stage of consideration of the case about the termination of the legal entity at bankruptcy and is accepted by a meeting of creditors. The procedure of bankruptcy can be accelerated if it is about obligatory payments in the budget and off-budget funds. The special law approved by the state is adopted about holding such procedure.