Since it amended its Company Act in 2014, Gibraltar has become a magnet for foreign investors setting up companies here in various industries. Aside from providing for simplified company registration procedures, the new Companies Law also provides for new rules in case of company liquidation.
Our company formation agents in Gibraltar can offer more information on the new 2014 Companies Act.
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Ways of liquidating a company in Gibraltar
Company liquidation or dissolution in Gibraltar is voluntary or compulsory. In the case of voluntary dissolution, it can occur at the request of the shareholders or the creditors, while compulsory liquidation falls under the governance of the Insolvency Act and occurs when a Gibraltar company is no longer able to pay its debts.
Voluntary dissolution in Gibraltar
Voluntary company liquidation in Gibraltar implies the dissolution of the company while it is still solvent. In order to assert this, company directors must offer a statutory declaration of solvency. Based on the declaration, the company will appoint a liquidator who will take over the business’ assets and debts, liquidates all debts and any remaining amount will be distributed among the shareholder. Also, upon voluntary company dissolution the following documents must be filed with the Gibraltar Companies House:
- – the declaration of solvency, which must be filed within 15 days after it’s been prepared;
- – a special resolution to dissolve the company, which must be filed within 30 days after the declaration of solvency was submitted;
- – a statement appointing the liquidator, which must be confirmed in writing by them.
The declaration appointing the liquidator must be filed within 14 days from their nomination. The shareholders must also make sure the Gibraltar company has duly filed all document required by the law at the time of the liquidation.
You can also watch our video on company liquidation in Gibraltar:
Compulsory liquidation in Gibraltar
Compulsory dissolution of a Gibraltar company can only occur under one of the following circumstances:
- – the liquidation was order by a court of justice;
- – the company is bankrupt and supporting evidence was filed with the Companies Registrar;
- – the company had no activity for a year;
- – the company does not have the required number of shareholders anymore;
- – the company cannot honor its debts.
In the case of compulsory liquidation, a petition is filed with the Gibraltar Supreme Court. In this case, the court will appoint the official receiver handling the process.
For complete information about company dissolution, do not hesitate to contact our representatives in Gibraltar.