Liquidation
Read the texts and discuss the corresponding terms
Bulgarian law makes a clear-cut distinction between “ликвидация” and “обявяване внесъстоятелност”:
а) Доброволното прекратяване на търговско дружество се следвазадължително от ликвидация, целяща събиране на вземанията наликвидираното дружество, погасяване на задълженията му иразпределяне на остатъка между акционерите.
б) Несъстоятелността е съдебно производство на универсалнопринудително изпълнение за съразмерно удовлетворяване накредиторите на търговец или търговско дружество, което е спрялоплащанията по търговски задължения.
The UK Insolvency Service specifies three types of liquidation:
A) Members' voluntary liquidation (or members' voluntary winding up) - this is whenthe shareholders decide to put the company into liquidation, and there are enough assetsto pay all the debts of the company, i.e. the company is solvent. In this case a liquidator isappointed to realise the assets of the company, meet the claims of the creditors, anddistribute the remaining assets among the shareholders.
B) Creditors' voluntary liquidation (or creditors' voluntary winding up) - this is when theshareholders decide to put the company into liquidation, but there are not enough assets tosettle the company’s debts, i.e. the company is insolvent.
C) Compulsory liquidation (or compulsory winding up) - this is when the court issues anorder for the company to be wound up (a “winding-up order”) on the petition of a creditorstating that he or she is owed a sum of money by the company and the company cannot pay,and appoints an Official Receiver (OR) and possibly an Insolvency Practitioner (IP).ORs are civil servants and officers of the court. They investigate the affairs of individuals inbankruptcy and companies in compulsory liquidation, and report evidence for criminaloffences to a prosecuting agency. IPs work in the private sector and are usually eitheraccountants or solicitors.