Liquidation of an economic association

Liquidation means that an economic association ends its activities by putting its accounts in order, selling its assets (if necessary) and setting aside funds to pay its debts. Any surplus and assets are then distributed to the members in accordance with the provisions of the articles of association.   

Compulsory liquidation - the Swedish Companies Registration Office decides   

An association may be compelled to go into liquidation under the law on cooperative associations. This is called compulsory liquidation and is decided by the Companies Registration Office or the District Court. This can happen if the cooperative association does not meet the requirements of the law, for example if there are fewer than three members or if the activities are carried out differently than as specified at registration.    

Voluntary liquidation - the general assembly decides and notifies the Swedish Companies Registration Office   

Liquidation can be done voluntarily and is called voluntary liquidation. This usually happens when the association no longer wants to operate the activity.    

The general meeting shall decide on liquidation and report the decision to the Companies Registration Office. The decision shall apply immediately unless otherwise specified in the decision.    

How to appeal compulsory liquidation or a liquidator   

You can appeal decisions on compulsory liquidation or a liquidator appointed by the Companies Registration Office. When you receive the decisions, you will also receive information regarding how to appeal.   

A liquidator closes the company   

A liquidator is needed when the economic association is to be liquidated. The liquidator replaces the association's board and managing director and closes the company. The liquidator handles deregistration, accounting and ensures that taxes and fees are paid.   

The association may propose a liquidator. The Companies Registration Office then assesses whether the liquidator is suitable. The Companies Registration Office appoints a liquidator.   

The liquidator must notify the Companies Registration Office when the liquidation is concluded.

The Swedish Companies Registration Office's information on how liquidation and deregistration are carried out (in Swedish)

The Swedish Companies Registration Office's information and forms for liquidation and deregistration of a cooperative association (in Swedish)  

The name of the association is no longer protected   

When the association ceases, the right to the name also ceases unless someone protects it, for example by registering it as secondary business name for another company. A secondary business name is an additional company name for a part of the business's activities. Some company names can also be protected as trademarks.