29.09.2022
THE EBRD PREDICTS A SLOWDOWN IN ECONOMIC GROWTH IN BULGARIA NEXT YEAR
The European Bank for Reconstruction and Development (EBRD) has revised upward its forecast for Bulgaria's economic growth in 2022, but at the same time it already expects a sharper slowdown in growth in 2023.
In its September report, the EBRD expects that our country's GDP will grow this year by 3.0%, following a May forecast of 2.5% expansion and after an expansion of 4.2% in 2021.
This notable upward revision is due to the fact that the Bulgarian economy grew sustainably in the first half of 2022 by 4.5% year-on-year, driven by strong business stockpiling as well as good private and government consumption.
Personal consumption increased in the first six months of 2022 by 4.2% year-on-year, but the EBRD noted that the upward momentum had waned amid rising inflation and declining consumer confidence. At the same time, investment in the country fell sharply in the second quarter as businesses faced increased uncertainty, with investment 14% below pre-coronavirus pandemic levels.
Nevertheless, industrial production in Bulgaria increased in the first half of the current year by almost 17% year-on-year, and it remained stable, despite the suspension of Russian gas from the end of April 2022.
The EBRD said inflation had worsened significantly, reaching 17.3% year-on-year in July 2022 and above 20% in food, utilities and housing, transport, restaurant and hotel prices.
The government's main measure against rising energy costs is the full compensation of companies' electricity bills at electricity prices above 125 euros/MWh (over BGN 250 per megawatt hour).
Households in the country were protected by regulated electricity prices and pensions were increased by 10% in July 2022.
However, the ongoing political crisis could delay the absorption of the second payment of the EU's Recovery and Resilience Plan, the European Bank for Reconstruction and Development has warned.
Thanks to the economy's solid performance in the first half of the year, GDP growth was revised upwards for the whole of 2022 to 3 percent from the EBRD's May forecast of 2.5 percent economic expansion.
Uncertainty about gas supplies, weakening domestic and external demand amid high inflation and deteriorating confidence, as well as political uncertainty, could however lead to a sharp slowdown in economic growth in Bulgaria in 2023 to 1.5% at EBRD's previous May forecast for expected expansion next year of 3 percent.
29.09.2022
THE EC ASKED US TO CHANGE THE MINIMUM INCOME SCHEME
The European Commission is calling on Member States to modernize their minimum income schemes as part of the ongoing commitment to reduce poverty and social exclusion in Europe. The proposed Council Recommendation on Adequate Minimum Income Guaranteeing Active Inclusion sets out how Member States can modernize their minimum income schemes to make them more effective, which will eradicate poverty while promoting the labor market integration of these , which can work.
Minimum income is payments of money that help needy households reach a certain level of income that allows them to pay their bills and lead a decent life. They are particularly important in times of economic downturn, as they help mitigate the effects of declining household incomes for the most deprived, thus contributing to sustainable and inclusive growth. These cash payments are usually supplemented by benefits in kind, providing access to services and targeted incentives to enter the labor market. Thus, minimum income schemes are not a passive tool, but act as a factor in improving the prospects for inclusion and employment. Well-designed minimum income schemes strike a balance between reducing poverty, promoting employment and maintaining sustainable budget spending.
Minimum income and social safety nets should contain sufficient incentives and support for people who can work to reintegrate into the labor market. Furthermore, they should be designed to help realize the full potential of the environmental and digital transition by supporting labor market transformations and the active participation of disadvantaged people.
The social and economic benefits of adequate and targeted social safety nets have become even more important during the containment measures imposed by the COVID-19 pandemic. Adequate minimum income is also particularly important in the current context of rising energy prices and inflation following the Russian invasion of Ukraine, as income measures can be targeted specifically at vulnerable populations.
The proposal will contribute to the EU's 2030 social goals of reducing the number of people at risk of poverty or exclusion by at least 15 million, as outlined in the European Pillar of Social Rights Action Plan. It will also help Member States to achieve the target of at least 78% of the population aged between 20 and 64 having a job.
Valdis Dombrovskis, Executive Vice-President of the Commission on Economic Affairs in the People's Interest, said: Social protection systems help to reduce social inequalities and disparities. They provide a decent living for those who cannot work and encourage those who can to return to work. At a time when many people are struggling to make ends meet, it will be important for Member States this autumn to modernize their social safety nets with an active inclusion approach to help those most in need. This way we will be able to fight poverty and social exclusion and help more people get into work during this difficult period.
Commissioner for Jobs and Social Rights Nicola Schmidt added: One in five in the EU today is at risk of poverty and social exclusion. All Member States have minimum income schemes, but the analysis shows that they are not always adequate and do not reach all those in need or motivate people to return to the labor market. In a context of rising living costs and increasing uncertainty, we need to ensure that our social safety nets are up to the task. We need to pay special attention to getting young people back into work, including through income support, so they don't fall into the vicious cycle of exclusion.
Member States are recommended to:
To improve the adequacy of income support:
to determine the level of income support through a transparent and reliable methodology.
while maintaining work incentives, ensure that income support gradually reflects a range of adequacy criteria. Member States should achieve an adequate level of income support by the end of 2030 at the latest, while maintaining the sustainability of public finances.
To review annually and, if necessary, adapt the level of income support.
To improve the coverage and use of the minimum income:
the criteria for benefiting from assistance should be transparent and non-discriminatory. For example, to promote gender equality and economic independence, especially for women and young people, Member States should make it easier to receive income support per person instead of per household, without necessarily increasing the overall level of benefits per household. In addition, further measures are needed to ensure that minimum income schemes are used by single-parent households, which in most cases are women.
Application procedures should be accessible, simplified and accompanied by user-friendly information.
The decision in relation to an application for minimum income should be issued within 30 days from the submission of the application, with the possibility of revising this decision.
Minimum income schemes should be adapted to situations of socio-economic crisis, for example by introducing additional flexibility regarding eligibility criteria.
To improve access to inclusive labor markets:
Measures to increase labor market activity should provide sufficient incentives for (re)entering the labor market, paying special attention to supporting young people.
Minimum income schemes should help people find and keep jobs, for example through inclusive education and training and support during and after employment and for mentoring.
It should be possible to combine income support with work benefits for a shorter period, for example during a probationary period or a traineeship.
To improve access to support and essential services:
Minimum income recipients should have effective access to quality support services in the areas of health care, training and education. Social inclusion services such as counseling and mentoring should also be offered to those in need.
In addition, minimum income recipients should have constant efficient access to basic services such as energy.
To promote the provision of personalized support:
Member States should carry out an individual multi-faceted needs assessment to identify the barriers beneficiaries face to social inclusion and/or employment and the support they need to overcome them.
Based on the assessment, no later than three months after receiving access to a minimum income, the recipients should be given an inclusion plan containing joint goals, a timetable and a special package of measures to support their achievement.
Make the management of social safety nets more effective both at EU level and at national, regional and local level, and introduce monitoring and reporting mechanisms.
The EU provides funding to help member states improve their minimum income schemes and social infrastructure through reforms and investment.
Next steps
The Commission's proposal for a Council Recommendation on an adequate minimum income guaranteeing active inclusion will be discussed by Member States with a view to its adoption by the Council. After its adoption, Member States should report to the Commission every three years on their implementation progress. Furthermore, the Commission will closely monitor the implementation of the Recommendation in the context of the European Semester. The proposed instrument, a Council Recommendation, gives Member States sufficient latitude to assess how best to achieve the objectives of this initiative, taking into account their specific circumstances.
Context
One in five — or a total of 94.5 million people — were at risk of poverty or social exclusion in the EU in 2021. Social safety nets play a key role in supporting these people and facilitating their (re)entry into the labor market if they can. However, more effective social protection systems are needed as around 20% of the unemployed at risk of poverty do not qualify for income support and between 30 and 50% of the eligible population do not receive assistance for a minimum income.
29.09.2022
EMPLOYMENT IN BULGARIA AT A 14-YEAR MAXIMUM
The employment rate among able-bodied citizens of the European Union (between 20 and 64 years of age) amounted to 74.8 percent in the second quarter of the year. This is the eighth consecutive quarter in which the indicator has increased, and compared to the previous quarter (January - March 2022) it increased by 0.3 percentage points. This is indicated by the latest data of the European statistical agency Eurostat, published today on its website.
In Bulgaria, the employment rate in the second quarter reached 75 percent of the working-age population from 20 to 64 years of age. This is the highest level of employment in our country for at least 14 years, according to available data, and in the second quarter of 2009 it was 68.6 percent.
Stagnation in the labor market
Labor market slack, which includes people with unmet employment needs, which is also one of the main components of unemployment, accounted for 11.5 percent of the extended labor force (aged 20-64) in the EU in the second quarter in 2022. This is down from 11.9 percent registered in the first quarter.
Bulgarians experiencing an unsatisfied need for employment in the second quarter of the year were 7.7 percent of the expanded labor force, which is a minimal decrease (-0.1 percent) compared to the previous quarter. This is still the eighth consecutive quarter of a decline in the indicator, after in the second quarter of 2020 it added 2.2 p.p. compared to a quarter earlier, reaching 10.6 percent.
Comparison by EU Member States
Changes in the level of employment between the first and second quarters of the year vary in the different member states of the Union. The largest increase was registered in Lithuania (+1.6 p.p.), Latvia (+0.9 p.p.), as well as Ireland and Slovakia (+0.8 p.p. each).
Although employment rose in 20 EU countries, it maintained its level in Hungary and Slovenia, and fell in Croatia and Belgium (-0.5 p.p. each) as well as in Luxembourg (-0.2 p.p.) and Cyprus and Portugal (-0.1 p.p. for each).
29.09.2022
WHAT IS A PERMANENT ADDRESS?
According to the Civil Registration Act, a person's address is the unique description of where they live or where they receive their correspondence. The address in Bulgaria necessarily consists of the name of the district, the municipality and the settlement. An address is something very important because it is related to many things in a person's life - receiving subpoenas, tax notices, obtaining identification documents, voting in elections, health status and medical care, employment and many others.
Every person is obliged to declare in writing his permanent and current address. The two addresses may match. They are important for the so-called address registration, which is reflected in the population registers and in the National Database "Population". It is carried out by municipalities and town halls.
And here we come to the specifics related to a person's permanent address. It is in the locality that everyone chooses to be registered with. It is always on the territory of Bulgaria, unlike the current one, which can also be abroad under certain rules. The permanent address is primary and each person can only have one. It fits into the identity card. However, in the application for issuing an identity card or international passport, as well as when submitting a tax return, both addresses are indicated - permanent and current.
The permanent address is declared by submitting an application by the relevant person to the Municipal Administration or to the offices of the Ministry of the Interior under the Law on Bulgarian Identity Documents. The application is made in person, and exceptionally - by an authorized person after presenting a notarized express power of attorney. For minors and persons placed under interdiction, the application is made by their legal representatives.
If someone wants or needs to change their permanent address, they must submit a special application to the municipality or town hall where the person chooses to be entered in the population registers. That is, if he moves from Varna to Sofia, he must go to the relevant district in the capital, where he will live, and submit an application.
For the change, he must carry an identity document, a copy of a document proving the ownership or use of the property - a title document. In the case of registration on the basis of a rental agreement, evidence of the use of the property for residential purposes should be provided, e.g. a certificate of declared data from a local tax and fee office. There must also be a declaration of written consent of the owner - when the applicant is not the owner. It is signed personally by the owner in front of the official or submitted with a notarized signature.
When the permanent address changes, the change is reported through the National Database "Population" to the municipality of the previous permanent address of the municipality in which the current address is located, and to the Ministry of the Interior through ESGRAON. This is done ex officio.
After changing the permanent address in the municipality or the town hall, the relevant citizen must change his identity card by applying to the passport services of the Ministry of the Interior. The identity card is changed within one month from the submission of the application for change of permanent address.
28.09.2022
AN ACTION PLAN FOR THE IMPLEMENTATION OF THE NATIONAL DEVELOPMENT PROGRAM BULGARIA 2030 IN THE PERIOD 2022-2024 HAS BEEN APPROVED
The Government adopted an Action Plan for the implementation of the National Development Program BULGARIA 2030 in the period 2022-2024.
Its main task is to contribute to the achievement of the three strategic goals of the National Program - accelerated economic development, demographic upswing and reduction of inequalities, the realization of which is envisaged through targeted policies and interventions grouped into five interconnected and integrated axes of development. They are innovative and intelligent Bulgaria; green and sustainable Bulgaria; connected and integrated Bulgaria; responsive and fair Bulgaria; spiritual and vibrant Bulgaria. To achieve the government's intentions, the action plan presents the operational strategy for the 13 national priorities presented in the document.
The national program is a framework strategic document of the highest order in the hierarchy of national program documents. It defines the vision and general objectives of development policies in all sectors of public administration, including their territorial dimensions.
28.09.2022
SMALL BUSINESS IS ON THE EDGE OF SURVIVAL
Analysis of the specialist
Millions of small and medium-sized businesses in the European Union are wondering how to make ends meet. Rising energy and commodity prices, galloping inflation, shaky supply chains, geopolitical tensions, and more are too much of a challenge for small businesses.
Bulgarian small and medium-sized enterprises also complain that they are on the brink of survival, but some analysts say that their fears are exaggerated and that the danger for them is less than for others in the EU.
It is important to know that small and medium-sized enterprises make up 99% of companies in the Union, provide two thirds of jobs in the private sector and contribute to more than half of the total added value. So Brussels cannot ignore the "backbone of European business", targeting aid primarily to save large companies and handing out cash to households.
Costs are unpredictable
The European Commission intends to amend the temporary framework for state aid in October, allowing for state guarantees while maintaining a level playing field. It is obvious that the community does not currently have many funding options and will rely mainly on the recovery fund. As of August, €100 billion had been paid out to member states, meaning €700 billion is still free and can be used for investment and saving jobs. This does not at all mean that the money in the fund should be wasted on patching holes. It is imperative that some of them be invested in promising business models to help smaller businesses, so that they do not have to be rescued in two months.
Meanwhile, Romanian MEP Niku Stefanuta, from the Renew Europe group, who is the rapporteur on the EU's 2023 budget, has warned that the European coffers are empty. After all, on June 7, the European Commission presented a draft proposal for financing important reforms such as green and digital transition, health care, scientific research and small and medium-sized enterprises with almost 300 billion euros. Those numbers sounded good at the time, but now they are completely inadequate with inflation, high energy prices and border warfare making costs unpredictable.
A week ago, the chairwoman of the commission, Ursula von der Leyen, promised to propose a package of measures to support small and medium-sized enterprises, which includes reducing bureaucracy and better access to the common market. Emphasis will also be placed on family businesses. This is expected to happen in the next month. The measure is a bit late, but the delay can be excused with the pressing issues, such as the rounds of Asia and Africa in search of gas.
The labor market ran out of staff
Small and medium-sized businesses face another serious problem - the lack of personnel. We are talking about people with low qualifications to those with higher education. Businesses everywhere are complaining that they can't find workers and that the labor market is tight to historic levels. Some of them are offering higher wages, and others are looking for staff outside the union, because more than 50% of Eastern European workers who returned to their home countries because of the pandemic no longer want to return.
According to Eurostat, around 193 million Europeans were looking for work in the first quarter of 2022, and around 74.5% of people in the EU aged 20-64 were working. This means that the unemployment rate is lower than ever. It is no coincidence that the French Association of Employers announced that 94% of recruitment companies reported that they often find it difficult to find the right staff, and sometimes any candidates. There is currently a hunger in Western Europe for truck drivers, waiters, airport staff, carers, engineers and IT professionals. Workers are also wanted for construction, tourism and catering.
How is Bulgarian business doing?
A number of Bulgarian manufacturers claim that they are on the verge of bankruptcy. It has been reported that, for example, in the dairy sector, many small businesses are closing due to unaffordable prices. Their problems are understandable, since our biggest trading partners are in Europe, and if there is a recession there, it will inevitably come to us as well.
According to business, the state is not doing enough to support businesses. At the beginning of September, the employers' organizations requested the Cabinet to urgently adopt a decree to continue the compensations for the high electricity prices for October, November and December. Entrepreneurs also warned that the delay of this decision will lead to a severe liquidity crisis for a large part of the companies, which will cause production stops and job cuts in the middle of winter.
However, more and more economists claim that Bulgaria is one of the countries with the most generous compensation for business.
"The business is subsidized so that prices do not rise. If this does not happen, this scheme for state support must be seriously reconsidered," noted economist Lachezar Bogdanov.
Bulgarian companies are somewhat benefited by the fact that our country is a producer of electricity, and one of the biggest factors for inflation at the moment is energy prices.
The good news is that by the end of the year, BGN 735 million will enter the Bulgarian economy from Brussels, which is mainly intended for small and medium-sized enterprises. The other European funds that businesses can rely on is a BGN 30 million program for information and communication companies and cyber security. This will be entirely grant aid for about 1400 companies. A program for investments in photovoltaic plants and batteries with a budget of BGN 200 million is also planned. From next year, the Ministry of Innovation and Growth will have BGN 7 billion for business support under the structural funds of the European Union.
There remains to be control over the distribution and spending of these funds, because Bulgaria has been receiving money from the European funds until now, but the results are known.
28.09.2022
BULGARIA AND ROMANIA AGREED ON DANUBE BRIDGE-3
Bulgaria and Romania agreed on a third bridge over the Danube River. The infrastructural facility will be built near Ruse - Gyurgevo, BTA reports. For this purpose, an agreement will be signed between the two countries. In another document, they will regulate the commitments of the two countries for the implementation of the Fast Danube project and the creation of a joint company to manage the activities of the project. This was agreed upon by the Deputy Prime Ministers of both countries, Hristo Alexiev and Sorin Grindianu, at a meeting in Bucharest.
Deputy Prime Minister Alexiev is in the Romanian capital as the head of the Bulgarian delegation at the Conference of Plenipotentiaries of the International Telecommunication Union at the United Nations.
The two agreements with clear tasks and specific deadlines for the implementation of the various stages will be signed as soon as possible.
Hristo Alexiev and Sorin Grindianu were adamant that the construction of new bridges, the deepening of the Danube, ferry connectivity and improved border crossings should be considered as one common strategic priority with several projects in it.
Deputy Prime Minister Alexiev also raised with his colleague the question of the modernization of the railway section Craiova - Calafat, which is a continuation of the railway line from Danube Bridge 2 in Romanian territory.
In mid-October, the two deputy prime ministers are planning a joint meeting in Brussels, where they will jointly present a project for financing the next phase of Fast Danube and Danube Bridge 3.
Hristo Alexiev and Sorin Grindianu confirmed their desire, in parallel with the agreement reached for Danube Bridge 3, to work on the remaining projects for the construction of bridges between the two countries, according to the signed agreement of 2019.
28.09.2022
HOW CAN A DESTROYED OR LOST NOTARIAL DEED BE RESTORED?
The Civil Procedure Code stipulates that notarial deeds for the transfer of ownership or for the establishment of a real right to immovable property and for the certification of ownership rights to property shall be issued by the notary in whose district the property is located. Entries, markings and deletions for property are carried out by order of the registration judge from the registration office in whose district the property is located. Acts subject to entry, marking and erasure are submitted in two or more identical copies, it is also written in the Civil Procedure Code.
In the code, there is a special chapter entitled "Notarial proceedings", which also specifies the general rules for starting notarial proceedings, who are the parties to it, the place and time of certification. This chapter also specifies the special rules to which notarial proceedings are subject. They are related to the form of the notarial deed, how this deed is issued, what is its content. Thus, it becomes clear here that the form must necessarily be written, that notarial acts are arranged in a special way, order and in special books, etc.
However, all these rules are related to the issuance of a notarial deed under a normal procedure. When such a document is lost, destroyed or damaged, then it is a completely different procedure.
It is important to know that the original notarial deed of ownership or other real rights is something very important and it should be kept very well, because losing it can lead to serious problems and even attempts at abuse. If it still happens that the document disappears, certain actions must be taken to restore it, to remove a duplicate.
The right to do this rests with the owner, and if he is deceased, the heirs can do so. However, they may request this by submitting a certificate of heirs.
A duplicate of a notarial deed can be issued in any division of the property registry at the Registration Agency at the location of the property. The lot of the property with all the documents is stored there and where there is a signed and stamped copy of the document. For a property in Sofia, you must go to the headquarters of the Registration Agency. And there you have to go to the property register and submit an application.
If the property was the subject of some disposition - for example, a sale and purchase, and this happened after October 1, 1998 with a private notary, a duplicate of the notarial deed can be issued by the relevant notary, from his notary's office.
This is the date after which the fully public notary became fully private. However, if the issuance was before that or one does not know exactly who was the notary who issued his lost notarial deed, the procedure is definitely through the Registration Agency.
The agency itself has indicated on its website that the transcript is a certified or non-certified copy of the acts that are kept by the relevant Registry Office. Uncertified transcripts, which may also be called copies, can be requested by anyone. They are given immediately. Certified transcripts are issued only to the parties to the deed, their successors or representatives by law or by authorization.
Transcripts are issued based on a written request from the person. A fee is also collected for certifying the authenticity of transcripts and extracts from documents and papers kept at the Registry Office. Transcripts can also be requested to be retrieved electronically through the single portal of the Registration Agency.
27.09.2022
HOW CAN A HOME BECOME AN OFFICE?
It is necessary to know that according to the Law on the Planning of the Territory, a property can become an office only if strict requirements are met. Even more so when it comes to the conversion of a residential property, regardless of whether it is being converted into an office, shop, studio, doctor's or dentist's office.
There is no doubt that it is much easier and painless to convert premises in residential buildings into offices and shops in newly constructed buildings. Such premises are included in the architectural and structural plans from the very beginning. For some of them, changes are made in advance in order to meet the requirements - grocery stores, pharmacies, dental offices, etc., in advance pass through the control of the sanitary and hygienic authorities and fire protection, etc. For them, the Law on the Planning of the Territory determines that "objects for business and service activities in a newly constructed residential building are planned in the underground, semi-underground and first floors, if separate entrances to them are provided and they comply with the sanitary and hygienic, fire protection and other technical requirements".
Much more often, however, in already built residential buildings, apartments are rebuilt in such objects. In this case, it is necessary to follow the rules so as not to lead to problems in the construction of buildings, to conflicts between floor co-owners, to violation of architectural plans, etc.
According to the Law on the Planning of the Territory "in an existing residential building with a condominium regime, it is allowed to renovate and change the purpose of a living space or an independent dwelling into a cabinet for health needs, for an office or for a studio for individual creative activity, related to access to outsiders in the building if the objects are located on the first floor". Mandatory, this reconstruction must comply with sanitary and hygienic, fire protection and other technical requirements. According to the law, "express written notarized consent of all owners - immediate neighbors of the objects" is also required.
As an exception, it may be allowed to place the specified objects on other above-ground floors, says the Law on the Planning of the Territory. Another issue is that in quite a few residential buildings this is not an exception at all, but a rule. Especially in the central parts of the cities.
It should be noted that there must be projects for the redevelopments. According to the Law on the organization of the territory, they "must be presented with a motivated opinion of a construction engineer with full design legal capacity, proving that the loads are not increased, structural elements are not affected and the load-bearing capacity, stability and durability of the building's structure are not reduced" . And when changes are required in the structure or the loads are increased, a structural part of the project is also presented.
According to the current Condominium Management Law, an owner, user or resident who exercises a profession or carries out an activity in a separate object of the condominium, related to access by outsiders, pays the costs of management and maintenance of the common areas in the amount of three to five times the amount , determined by decision of the general assembly of the condominium.
26.09.2022
HOW IS THE LIQUIDATION OF A COMPANY CARRIED OUT?
A company can be dissolved for many different reasons. This can happen, for example, when it is declared bankrupt. Or by court decision in cases strictly defined by law. Termination can also be on different grounds, depending on the type of commercial company. For example, a limited liability company (LLC) can be dissolved due to the expiration of the partnership agreement, by a decision of the partners, taken by a majority of 3/4 of the capital, in the case of mergers and acquisitions. A one-person limited liability company is terminated by the death of an individual, if he owns the capital, unless the heirs wish to continue the activity. A joint-stock company is terminated by a decision of the general meeting, by a court decision, if it does illegal things, if the net value of the company's property falls below the amount of the registered capital, etc.
And here it is important to note that after the termination of the relevant company, it must be liquidated.
According to the Commercial Law, the term in which the liquidation must be completed is determined by the general meeting of the limited liability company and the joint-stock company, and for other commercial companies - by a unanimous decision of the unlimited partners. Such a term is also determined by the registration official at the Registration Agency when he appoints liquidators. If necessary, the specified period can be extended. The liquidators are entered in the commercial register, where notarized consents with samples of their signatures are presented. They bear the same responsibility for their liquidation activities as managers and other executive bodies of commercial companies.
The liquidators are obliged, by announcing the dissolution of the company, to invite its creditors to present their claims. The invitation is sent in writing to the known creditors and announced in the commercial register. The liquidators are obliged to notify the National Revenue Agency about the started liquidation.
Commercial law also obliges them to complete ongoing transactions, collect receivables, convert remaining assets into cash, and satisfy creditors. They can enter into new transactions only if this is required by the liquidation.
The liquidators may, in agreement with the partners, respectively with the shareholders and creditors, transfer to them separate objects from the liquidation property, if this does not damage the rights of the other partners and creditors. The Commercial Law expressly states that the liquidator must exercise his powers with the care of a good merchant.
It is important to note that they represent the company and have the rights and duties of its executive body. They draw up a balance sheet at the time of dissolution of the company and a report that explains the balance sheet. At the end of each year, they perform an annual closing and submit an annual financial statement and an annual report on their activities to the governing body. The governing body decides on the acceptance of the opening balance sheet, the annual closing and the discharge of liability of the liquidators.
The property that remains after satisfying the creditors is distributed among the partners, respectively among the shareholders. However, this distribution takes place only if six months have passed since the day on which the invitation to creditors was announced in the commercial register. The management body of the company may, after the creditors are satisfied, write off the claims of the company that are uncollectible. The decision is taken by a simple majority.
When all debts are settled and the rest of the property is distributed, the liquidators ask for the company to be wound up. If it is later found that further action is necessary for the liquidation, the registration officer at the Registration Agency shall, at the request of the interested party, appoint the previous or other liquidators.
