Voluntary Wind-Down - The Dutch Temporary Turboliquidation Transparency Act

What is a turboliquidation?

Dutch law provides for the process of a turboliquidation. This is an expedited process for the voluntary wind-down of a company, which can be used to liquidate a company that does not have any assets (but may still have liabilities). The purpose of a turboliquidation is to terminate inactive companies in a straightforward manner, in part to prevent their misuse and in part to clean up the registers of companies.

If a turboliquidation is used, a company ceases to exist from the time of the decision by the (general meeting of) shareholders to dissolve the company, without a formal liquidation of the assets of a company being required. However, a company's dissolution by operation of law is potentially open to abuse by dishonest directors who dispose assets to qualify for the process without accountability, since the former Dutch framework for the dissolution of companies without assets did not provide sufficient transparency safeguards