What are the risks involved in a turboliquidation?

A turboliquidation can be a quick and efficient way to dissolve a company, but the process is not without risks. Proper preparation and expert guidance can significantly mitigate these risks.

Below we discuss the main risks:

1. Reopening the liquidation

In a turboliquidation, a company may only be dissolved if there are no more assets. If it turns out afterwards that there were assets after all, a creditor may ask the court to appoint a liquidator. This can lead to the reopening of the liquidation, with possible financial and legal consequences.

2. Director liability

As a director, you may be held personally liable in the following situations:

• Loss or concealment of assets: If assets were lost or improperly accounted for prior to dissolution.
• Selective payments: If you knowingly favored certain creditors (such as affiliates).
• Wrongful turboliquidation: If it turns out that the turboliquidation was not lawful, causing harm to creditors.
• Improper distribution of proceeds: For example, if claims are wrongfully disregarded or payments are improperly settled.
• Entering into new obligations: After the turboliquidation decision, no new obligations may be entered into if it is clear that they cannot be fulfilled.

With a concrete plan of action, we will help you minimize these risks.

3. Board Prohibition

The Public Prosecutor’s Office may apply to the court for an administration ban if:

• You have failed to comply with the filing obligation.
• You have committed acts that intentionally harm creditors.
• You have already been involved twice in a bankruptcy or turboliquidation within two years prior to the turboliquidation and are personally blamed for this.

A board ban means that you cannot be a director or supervisory director of a legal entity for a maximum of five years.

4. Personal liability for tax and pension debts

In case of payment problems for tax and pension debts, you are obliged to report to the Tax Office and the pension fund in time. If you fail to do so or do so incorrectly, you may be held personally liable. You can only escape this liability if you provide convincing evidence that you are not at fault for the unpaid taxes or contributions.

Avoid problems with expert advice

A turboliquidation requires careful preparation and execution to limit legal and financial risks. We are happy to help you with tailored advice to ensure that you go through this process safely and responsibly. Please contact one of our  attorneys by email, phone or fill out the contact form for a free initial consultation. We are happy to think along with you.