Article 63. Procedure for Liquidation of a Legal Person

1. The liquidation commission shall use the mass media where information on the state registration of a legal person is published to publish an announcement about its liquidation and about the procedure and term for the filing of claims by its creditors. This term shall not be shorter than two months after the time of publication of the announcement of liquidation.

The liquidation commission shall take measures to identify the creditors and receive the accounts receivable, and also shall notify the creditors in writing of the liquidation of the legal person.

2. Upon the expiry of the term for filing creditors' claims the liquidation commission shall draw up an interim liquidation balance sheet containing information on the composition of the liquidated legal person's property, a list of the claims filed by the creditors, the results of consideration thereof, and also a list of the claims that have been met by a court's decision that has become final, irrespective of the fact that such claims have been or have not been accepted by the liquidation commission.

The interim liquidation balance sheet shall be endorsed by the founders (participants) of the legal person or by the body that has taken the decision on liquidation of the legal person. In the cases established by a law the interim liquidation balance sheet is endorsed by agreement with an empowered state body.

3. If action has been brought in a case of insolvency (bankruptcy) of a legal person its liquidation carried out according to the rules of the present Code shall be terminated and the liquidation commission shall notify accordingly all the creditors known thereto. Creditors' claims in cases when the liquidation of a legal person is terminated when action is brought in a case of its insolvency (bankruptcy) shall be considered in the procedure established by the legislation on insolvency (bankruptcy).

4. If the amounts of money the liquidated legal person (except for institutions) has are insufficient to meet the claims of creditors the liquidation commission shall sell the legal person's property which is subject to levy of execution according to a law by a public sale, except for the items worth up to 100,000 roubles (according to the endorsed interim liquidation balance sheet) for the sale of which no public sale is required.

If the liquidated legal person's property is insufficient for meeting the claims of creditors or if there are signs of bankruptcy of the legal person the liquidation commission shall apply to an arbitration court by filing an application for bankruptcy of the legal person, if such legal person may be deemed unable to pay (bankrupt).

5. The disbursement of amounts of money to creditors of the liquidated legal person shall be effectuated by the liquidation commission in the order of priority established by Article 64 of the present Code in accordance with the interim liquidation balance sheet from the date on which it is endorsed.

6. After the completion of settlements of accounts with the creditors the liquidation commission shall draw up a liquidation balance sheet which is endorsed by the founders (participants) of the legal person or by the body that has taken the decision on liquidation of the legal person. In the cases established by a law the liquidation balance sheet is endorsed by agreement with an empowered state body.

7. Where the present Code envisages the subsidiary liability of the owner of the property of an institution or state-property enterprise for the liabilities of that institution or that enterprise when the property of the liquidated institution or state-property enterprise which is subject to levy of execution according to a law is insufficient the creditors have the right of filing a claim with a court for the outstanding part of the claims to be met with the resources of the owner of the property of that institution or that enterprise.

8. The legal person's property that remains after the creditors' claims have been met shall be handed over to its founders (participants) having rights in rem in respect of that property or corporate rights in respect of the legal person, except as otherwise envisaged by a law, other legal acts or the constitutive document of the legal person. If there is a dispute between founders (participants) as to who is going to receive a thing then it shall be sold by the liquidation commission by a public sale. Except as otherwise established by the present Code or another law, when a non-profit organisation is being liquidated the property remaining after creditors' claims have been met shall be used in accordance with the charter of the non-profit organisation to attain the objectives for the attainment of which it has been formed and/or for charitable purposes.

9. The liquidation of a legal person shall be deemed completed, and the legal person be deemed to have terminated its existence after information about its termination is entered in the comprehensive state register of legal entities in the procedure established by the law on the estate registration of legal entities.