When can I distribute remaining assets and profits from an Estonian Company in liquidation?

Typically, the remaining assets and/or profit of the Estonian company in liquidation are allowed to be distributed among shareholders six months after the liquidation notice is published.

The court may permit payments to shareholders before the expiry of six months from the publication of the liquidation notice, if this does not harm the interests of creditors.

If there is accumulated profit from previous fiscal years, which you want to distribute, it must be done before the liquidation decision is made. For profit distribution, the corresponding shareholder’s decision must be made (Read more). Once a liquidation decision is made, the liquidation rules apply.

Requirements for the Distribution of Assets of a Company Being Liquidated

Liquidator(s) Duties

• After satisfying all creditors' claims, liquidators prepare a final report and a distribution plan for the remaining assets.

Final Balance Sheet

• Reflects the assets remaining at the end of the liquidation procedure.

• Includes amounts deposited to cover potential liabilities.

Forms of Asset Distribution

• As a rule: in monetary form.

• As an exception, the articles of association may permit distribution in other assets as well.

Basis for Asset Distribution

• Assets are distributed among shareholders in proportion to their ownership.

• Based on the asset distribution plan prepared by the liquidators.

• The articles of association may establish a different procedure for asset distribution.