Article 62. The Duties of the Persons Who Have Taken a Decision on Liquidation of a Legal Person

1. The founders (participants) of a legal person or the body that have taken a decision on liquidation of the legal person shall inform in writing about it within three working days after the date of the decision the empowered state body carrying out the state registration of legal persons so that an entry be made in the comprehensive state register of legal entities to the effect that the legal person is under liquidation, and shall also publish information in the procedure established by a law that the decision has been taken.

2. The founders (participants) of the legal person, irrespective of the grounds on which the decision on liquidation thereof was taken, for instance in the event of actual termination of the legal person's activities, shall use the property of the legal person to commit the actions whereby the legal person is to be liquidated. If the legal persons' property is insufficient the founders (participants) of the legal person shall commit said actions jointly and severally with their own resources.

3. The founders (participants) of a legal person or the body that have taken a decision on liquidation of the legal person shall appoint a liquidation commission (liquidator) and establish a winding-up procedure and term in accordance with a law.

4. From the time of appointment of the liquidation commission the powers of managing the affairs of the legal person get transferred thereto. The liquidation commission shall act in the name of the legal person in liquidation in a court of law. The liquidation commission shall act in a bona fide and reasonable manner in the interests of the legal person in liquidation as well as of its creditors.

If the liquidation commission has established that the property of the legal person is insufficient to meet all the claims of creditors the further winding-up of the legal person may be carried out only in the procedure established by the legislation on insolvency (bankruptcy).

5. If the founders (participants) of the legal person default on or improperly execute the duties of liquidating it a person concerned or an empowered state body have the right of claiming in a judicial procedure that the legal person be liquidated and that a qualified receiver be appointed to do so.

6. If the liquidation of the legal person is impossible due to the lack of funds to meet the expenses required to liquidate it and to the impossibility of vesting the duty to bear these expenses in its founders (participants) the legal person is subject to removal from the comprehensive state register of legal entities in the procedure established by the law on the state registration of legal entities.