Liquidation (likvidācija)

Liquidation (likvidācija) is the process of ending a Latvian company's activity in which a liquidator collects debts owed to it, sells its property and satisfies creditors' claims before the company is struck off the Commercial Register. During liquidation the word "likvidējamā" (in liquidation) is added to its firm name.

Activity can be ended by a members' decision or a court ruling, for example if the share capital does not comply with the law or the company fails to file required information with the Commercial Register Office. The office publishes a notice of the start of liquidation on its website, and creditors lodge claims within one month unless the decision sets a longer period.

The liquidator has the rights of the management and supervisory boards as far as they fit the purpose of liquidation, but may conclude only transactions needed to wind the company up. If the assets are not enough to meet all justified claims, the liquidator must file for insolvency.

If nobody with an interest asks for a liquidator to be appointed and no insolvency proceedings are declared, there is no liquidation: the office strikes the company off, and any property left afterwards passes to the state.