As a result of inefficient economic activity and as a result of unqualified actions of the team of managers, a situation may arise in a manufacturing enterprise when no financial levers are in effect and the moment comes for the forced gratuitous withdrawal or, in other words, confiscation of the property of the enterprise occurs. This process can affect as completely all the property of the company as a result of its complete bankruptcy, so only a part of the property can be withdrawn to pay off any arrears that have arisen.
Unpleasant moments in the lives of owners and employees of the enterprise, such as confiscation of property, also occur as a result of any offenses within the framework of an administrative or even criminal offense for grave and especially grave crimes committed by the management or the owner of the enterprise out of mercenary motives or as a result of causing financial or physical damage in large volumes.
Even if a court decision is made in favor of the enterprise, the company’s management may be faced with a situation where, due to lack of financial resources or inability to use borrowed funds, a bankruptcy moment nevertheless sets in and then confiscation of the property of the enterprise.
Although there is a business strategy, when it is beneficial for a company to allow the bankruptcy of its production structure to get rid of illiquid assets. That is, literally bankruptcy is fictitious, and all assets of an enterprise are deliberately taken out of its turnover. The judicial authorities, as a rule, do not have enough leverage in this case to influence the management of the enterprise, and the entire responsibility of the production manager lies only in the property risks of the company, and not in personal property. In June 2009, the Law on Bankruptcy of Enterprises was amended. According to it, such a definition appeared as “the person controlling the debtor”, which may be the head or owner of the enterprise, carrying out activities over the past two years and leading to loss-making proceedings. And also changes were made, according to which, when the company’s assets are insufficient after confiscation, to recover its debt, claims for collection are applied to the personal property of the owner or director of the company. But even such severe measures do not affect the massive bankruptcy of enterprises. Economically and legally, this is a very profitable procedure for the liquidation of inefficient company assets in the form of various assets, regardless of their qualifications.
Classification of property of the enterprise divides its assets are divided into own and leased. Judicial confiscation of property affects only its own assets. Moreover, confiscation is imposed both on non-current assets, such as buildings and structures, machinery and equipment, inventory and other, and on current assets, such as stocks of raw materials and materials, fuel, goods in stock and even financial assets. Any property of the company suitable for the concept of property is subject to confiscation, including assets in the bank accounts of the enterprise, goods already shipped to the consumer or invested funds in construction in progress, insurance policies and equity investments in other enterprises, as well as assets placed in state or private valuable paper.
The property of the enterprise remaining after confiscation is transferred to a person who has legal rights to it, as a rule, it is the founders of an enterprise or a company that is authorized to act on behalf of the owner.