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Shutting Down a Danish APS Business in Denmark

If a Danish entrepreneur decides to close an ApS company, they must select the appropriate procedure, which primarily depends on the company's financial status. In Denmark, there are five significant types of proceedings and closures available, including:

1. If the company can restructure both its finances and operations, it may file a restructuring petition with the court to prevent bankruptcy proceedings. A restructuring administrator is appointed to oversee the proceedings.

2. A solvent company (with fewer debts than assets) may be liquidated voluntarily based on a statement of shareholders. The company must publicly announce its decision and allow three months for creditors to file claims. A liquidator is appointed to handle the liquidation proceedings, and once the company is liquidated, its shareholders are protected from future claims.

3. If the company is not solvent, bankruptcy proceedings will be initiated, which will lead to its closure.

4. A company may also be voluntarily liquidated, but all debts must be paid before the liquidation. The company's partners must sign a declaration to pay the debts at the time of closing and will be held fully liable if any debts remain or new debts arise. There should also be no claims or lawsuits at the time of the company's liquidation.

  5. In Denmark, if a company fails to file its annual report by the deadline, the managing director resigns, or the company is due for an audit and the auditor resigns without appointing a new one, the court can order forced dissolution. In such cases, the court will appoint a liquidator to review the company's financial situation. If the company is insolvent, it will be put into bankruptcy proceedings, and if it is solvent, it will be dissolved.

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