The starting point for the distribution is the reviewed final liquidation accounts. Cash and any other remaining assets must be fully listed in them. Before making a payment to shareholders, check whether known, filed, or still disputed creditor claims have been adequately taken into account. Liquidation costs and other closing obligations must not be overlooked either. A distribution may be made only once the applicable legal requirements and waiting periods have been met. It must then be determined which shareholders or other entitled parties are to receive a share of the residual assets. The allocation method is governed by the applicable statutory rules and valid company documents. Non-cash assets require a clear allocation and a substantiated valuation if they are not sold beforehand. For each payment or transfer in kind, document the recipient, basis of calculation, amount or asset, and date. The total of all distributions must match the residual assets shown in the final accounts.
Distribution of residual assets upon completion of a company’s liquidation in Georgia
Residual assets may be distributed upon completion of a company liquidation in Georgia only after creditor claims and winding-up costs have been taken into account and any applicable waiting periods have been observed. The remaining liquidation proceeds are allocated according to the relevant statutory and internal company rights to participate.
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