Pursuant to the Law of commerce the liquidation procedure usually continues 6 months since announcing of the invitation to the creditors.  Within this time the liquidator has the main obligation to sell the company `s assets. If it occurs, by any reason, that the liquidator is not able to sell it and the procedure could not be finished, then the supreme body of the company (the General meeting or the single owner of the company) should take a decision for extending of the liquidation with 6 months more or one year or some other period, depending on the concrete situation.  Also, the extension of the period for liquidation is possible in case when any creditors of the company occur after announcing of the liquidation or in case if the creditors of the company or the State institutions started legal actions against the company.

The prolonging of the liquidation period should be initiated after detailed proposal issued by the liquidator. The General assembly should discuss his proposal and should take a decision in this respect.  Then, the decision of the General assembly should be entered into the Commercial register where the new period of the liquidation shall be registered.

By law there are no limitations or instructions how many times the period of the liquidation procedure could be prolonged; the important is if the proposal of the liquidator is grounded and accepted.

The extension of the liquidation period has its specific depending on each specific case and it is appropriate the company to appoint a competent lawyer to prepare the necessary documents and to apply before the Commercial register.

There are also specifics concerning the companies which have been re-registered after the legally specified deadline (2012) only with the purpose the properties of the company to be transferred to the owner of the company or to the shareholders.

Regarding recovering of the company’s business after the liquidation has been started- it is possible to be terminated the liquidation procedure and to be restored its business activity.

It is necessary the company to take a decision to stop the liquidation process. The decision must be taken from the respective body- General Assembly of the company for Limited liability companies or by the Sole owner of the capital. Except the decision of the General assembly it is necessary also to be prepared a package of other legal documents and the recovering to be published into the Commercial register.

Prepared by “Valova & Angelova” law firm