Turboliquidatie

Turbo liquidation concerns the dissolution of a legal entity, such as a private limited company, whereby the shareholders resolve that the company shall be dissolved and the liquidation completed forthwith. This procedure is governed by Article 2:19 of the Dutch Civil Code and requires that no assets or liabilities remain.

The significance of turbo liquidation lies in the efficiency with which an inactive company may be terminated, thereby saving costs and time for entrepreneurs. It avoids unnecessary administrative burdens in respect of dormant companies and offers an alternative to the formal liquidation procedure.

In practice, turbo liquidation is frequently employed in relation to holding companies or entities that have ceased operations and hold no assets, provided the condition that no creditors exist is satisfied.