If you wish to close your company and all of the company’s obligations have been settled, dissolution by way of a shareholders’ declaration of solvency may be a simple and effective solution. A declaration of solvency may be used where the company has no debt and where the shareholders can declare that all creditors have been satisfied, including both due and not yet due liabilities.
The arrangement is governed by section 216 of the Danish Companies Act and means that the company may be dissolved without undergoing formal liquidation proceedings.
AYA Law assists you throughout the entire process and advises on whether a declaration of solvency is the right solution in your specific situation. At the same time, we ensure that the dissolution is carried out correctly and in compliance with the formal requirements of the Danish Business Authority.
Our assistance may include, among other things,
Assessing whether the conditions for a declaration of solvency are met
Preparing the declaration of solvency and any other necessary documents
Submission and registration with the Danish Business Authority
Advising on the shareholders’ liability and risks
It is important to note that the shareholders may incur personal and joint liability if, after the dissolution, it turns out that unsettled claims against the company did in fact exist at the time the declaration was made.
At AYA Legal Group, we focus on carrying out the dissolution efficiently and with a view to minimising the risk of subsequent claims or unforeseen liability issues.
You are always welcome to contact us for a no-obligation conversation if you are considering closing your company by way of a declaration of solvency.