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By Christian Takov, "Is divestiture permissible during the liquidation proceedings"
3. Responsibilities of the liquidator as regards the assets of the insolvent company. Formulation of the question: does the Commercial Code establish a procedure for cashing in the strict sense of the word, or merely defines the ultimate purpose of liquidation and states the means to achieve it?
3.1 The responsibilities of the liquidator
First, the liquidator is obliged to invite the company's creditors to lodge claims - by means of direct notice to the known creditors, and through publishing an invitation to the unknown, pursuant to Art. 267 of the Commercial Code. The liquidator must also:
- Conclude any current transactions
- Collect any outstanding receivables of the company
- Transform the remaining property in cash
- Satisfy creditors
- Allocate assets among the shareholders, and
- Request the deregistration of the company. (Art. 268, Para. 1, Art. 271 of the Commercial Code)
In fulfilling these obligations, liquidators must observe a number of special requirements to meet a variety of additional responsibilities. Fulfillment of those obligations on the part of liquidators determines the extent of their representative power to the company. This representative power as well as the range of transactions they can perform are limited - e.g. Art. 268, para. 1, sentence 2 of the Commercial Code.