What happens to the company in the case of death?

Last updated: March 28, 2018

When creating a company via Xolo Leap, you are the single owner and management board member of your company. In the event of your death, the company will temporarily have no official board member i.e. nobody can make decisions, sign documents etc on behalf of the company. To solve this, your official heir and/or the most natural person to take over the company would have to submit a written request to the Estonian Court to claim the board member status of the company. It makes sense to use Estonian professional legal advisers to compile the required request and documents. The Court will make a decision in this matter usually within 1-2 months, taking into account the arguments presented. This means the content of the application matters. This way the company's management can be taken over by your friend as well, even if he/she is not officially your heir, but can prove that he/she is the most logical person for this role.

Once the Court has approved the request, your heir can continue the operations of the company as the board member, access the bank account (assuming he/she has performed the personal KYC with the bank), sign documents on behalf of the company (assuming he/she has applied for e-Residency). And the shares of the company will be transferred as a part of the entire inheritance (assuming there's more than the shares of the company), again, formalized by the Estonian Court. If nobody from your side makes an effort to become the new board member of the company, the Estonian Court themselves will appoint somebody from their side to act on behalf of the company to clear up the obligations and terminate the company in a decent way.

Did this answer your question?

Related articles