Dissolution or liquidation
When the existence of a legal entity is no longer necessary, it can be dissolved, provided various legal requirements have been met. First, a resolution has to be passed to dissolve the legal entity. As a rule, the body authorised to pass this resolution is indicated in the articles of association. Once passed, the Trade Register has to be notified of the resolution.
However, dissolution of a legal entity does not always automatically mean that the legal entity ceases to exist. The legal entity continues to exist if this is necessary for the liquidation of assets, in which case "in the process of liquidation" should be stated after the name of the legal entity.
Liquidation of assets is performed by one or more liquidators, who were either designated when the resolution was passed or are stated in the articles of association. In most cases, management will serve as the liquidators. After liquidation, the legal entity should be deregistered from the Trade Register.