With a fast-track liquidation, no liquidation (financial settlement) is required, and you can quickly settle the dissolution of a legal entity. That saves costs. You only need a decision from the general meeting of shareholders or board. As a result of this decision, the legal entity immediately ceases to exist. You must complete and file the KVK form 17a on KVK.nl, 'Dissolution of a company, legal person or partnership'.
What are the conditions?
In most cases, fast-track liquidation (alos known as turbo liquidation) takes place at empty bvs that have no capital and therefore no income. Income consists of all assets on the balance sheet of a legal entity. For example, real estate, liquid assets, inventory, stock, and receivables. Is there any income? Then a fast-track liquidation is not allowed. A liquidator must divide the assets.
What are the risks?
The disadvantage of a fast-track liquidation is that a creditor can request liquidation through the court if it turns out that there were still debts in the legal entity after the decision to dissolve. The court can then reverse the dissolution and declare the legal entity bankrupt. This may pose a risk for you as a director. If you have not filed the annual accounts for example, you and your co-directors can be held personally liable for all debts of the legal entity.
Better protection in turbo liquidation
New legislation is being proposed to better protect creditors in the event of fast-track liquidation. Companies must be able to clearly demonstrate that a fast-track liquidation was necessary. The board of an organisation will be obliged to draw up a closing balance sheet. It is not yet known when the change will take effect.