likvidácia

Likvidácia is a term used in Slovak and Czech to denote the process of winding up or dissolving an organization, or more generally turning assets into cash. In corporate law, likvidácia refers to the formal conclusion of a company's life as a legal entity. The term covers both voluntary wind-up initiated by shareholders and compulsory dissolution ordered by a court or authorities. The process typically involves appointing liquidators who take control of the company, settling liabilities, realizing assets, and distributing any remaining proceeds to shareholders before the entity is removed from the commercial registry.

During likvidácia, the company usually ceases operations and stops taking on new business decisions. Liquidators prepare final accounts, notify creditors, and file the necessary documentation with the relevant authorities to ensure compliance and settle tax obligations. In insolvency contexts, likvidácia often follows bankruptcy procedures, with the aim of maximizing creditor recoveries. Proceeds are allocated according to statutory priorities and applicable laws.

Beyond corporate use, likvidácia can also mean the liquidation of assets in a broader sense, such as selling off inventory or property to convert assets into cash. In some contexts, the term is used as a euphemism for the killing or elimination of a person or group, particularly in criminal or security contexts. This violent usage carries significant ethical and legal implications and is treated accordingly in legal and investigative discussions.

See also: liquidation, wind-up, dissolution, bankruptcy, insolvency.