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Legal Basis of Company Liquidation

Summary/Abstract: Every business entity passes through phases of the business cycle, which also includes discontinued operations. Liquidation, as a form of termination of certain company operations, is conducted by accurately defined procedure, following the proposal of the liquidation proceedings, all in accordance with legal regulations that define this area. The essence of the legal basis for the company liquidation is reflected in the fact that deregulation, naimely the absence of it, has led to the avoidance of legal obligations and responsibilities, which would, in the long term, lead to the destabilization of both domestic and foreign trade.

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