Businessman Eitan Eldar notes that “The Marker” website posted an article which explained how to perform liquidation of a public company. At first, the article explained that public company is a type of legal entity – so when deciding to liquidate it, it must be done by law firms.
Liquidation of a company – in what cases can it be made?
Liquidation, according to the article, can be demanded by the creditors, if there is insolvency in a company, or following the instructions of its shareholders. Eitan Eldar emphasizes that the article brought an important point – when a company with solvency and can repay the debt, the demand to liquidation can come from shareholders only. For this purpose, it is necessary to submit a declaration of the directorate, indicating the company’s solvency. If the company’s creditors do not object, a meeting will be convened in order to decide on the liquidation and appoint a person to be responsible.
The role of the liquidator
Eitan Eldar explains the role of the liquidator is important in this context, as noted in the article – he must ensure the removal of the debts accumulated by the company, take care of its receivership and bring it to the point where it has no debts at all. In the case of a public company, in some cases, one can be rewarded for its shell.
Businessman Eitan Eldar is considered a central figure in the financial markets.