Voluntary Liquidation of Solvent Companies
Swiss corporate law provides for the dissolution procedures for legal entities leading to a voluntary liquidation of the business with full protection of the creditors’ claims.
Voluntary Liquidation of Illiquid Companies
Upon their own motion, bankruptcy proceedings may be opened against companies without prior enforcement proceedings in the instances provided for by the Swiss Code of Obligations. The application is based on a demonstration of manifest (i.e. not just temporary) illiquidity and is to be supported by a shareholders’ resolution and a recently established balance sheet. As such, voluntary liquidation leads to bankruptcy proceedings; its effects do not differ from those in an involuntary liquidation. Debtors that are not otherwise subject to bankruptcy proceedings may request its application upon declaration of insolvency (illiquidity).