What should the company do if the foreign legal entity who is the sole shareholder of the legal entity fails?
The sole shareholder of the incorporated company who is a foreign legal entity went bankrupt with a court decision. What happens to the incorporated company in this case? Should it be closed immediately by applying to the commercial court of first instance due to bankruptcy?
If the company abroad was closed due to bankruptcy, a lawsuit should be filed at the commercial court of first instance to liquidate the company and assign a liquidator. If the company abroad is not closed yet, the general board may take the decision of liquidation.
Source: İSMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
