Violations in the creation of a legal entity that cannot be remedied as grounds for compulsory liquidation of corporate-type legal entities

Abstract

The article is devoted to the study of the application of compulsory liquidation of a legal entity not related to bankruptcy due to violations committed during its creation that cannot be remedied, the identification of shortcomings in legislation in this area, and the analysis of court practice regarding the termination of corporate-type legal entities. Conclusions and proposals aimed at improving legislation in this area have been developed. The wording of the grounds for liquidation (termination) of a legal entity has been unified by amending the Tax Code of Ukraine to clarify the grounds for tax authorities to apply to the court for the termination of a legal entity, naming it as follows: ‘to apply to the court for the termination of entrepreneurial activity by an individual entrepreneur and the liquidation of a legal entity due to violations committed during its creation that cannot be remedied.’ It is argued that the cancellation of state registration of constituent documents and the liquidation of a legal entity are essentially different concepts, the existence of which in legislation is due to the emergence of a significant body of regulatory and legal acts, which has affected their quality and negatively affected the level of legal technique. It is emphasised that the legislation does not define the list of entities responsible for violations committed during its creation (provision of inaccurate information, forged signatures, violation of notarial requirements, defect of will when signing the founding documents, etc.).