CONTENTS
PRESENTATION 11
CHAPTER 1
LIQUIDATION OF A COMPANY OR ESTABLISHMENT
AS A GROUND FOR TERMINATION OF AN EMPLOYMENT CONTRACT 13
I. Company Closure 14
A. Closure of Activities by a Public Service Company 15
B. Evolution of the Regulations on the Closure of Companies That Do Not Provide Public Services 17
II. Notice to Employees of Company Closure 23
III. Prior Authorization for Collective Dismissals and Closure of a Company or Establishment 26
A. Collective Dismissals 33
B. Partial or Total Termination of Employment 40
IV. Closure Without Authorization from the Ministry 44
V. Liquidation Not Requiring Authorization from the Ministry 47
VI. Company liquidation does not imply a replacement of employer 50
CHAPTER 2
PROCEDURES FOR THE MANDATORY AND VOLUNTARY LIQUIDATION OF COMPANIES, COOPERATIVE SECTOR ENTITIES, AND INDIVIDUALS 55
I. General Regime 55
A. Business Insolvency Regime of Law 1116 of 2006 55
1. Judicial Liquidation 57
a. Scope of Application 57
b. Competent Judge 58
c. Procedure 59
2. Voluntary Liquidation of Commercial Companies 71
II. Special Liquidation Procedures 75
A. Entities Supervised by the Financial Superintendency 75
1. Taking Possession of the Entity's Assets, Assets, and Business 75
2. Administrative Compulsory Liquidation Process 77
3. Voluntary Liquidation 81
B. Entities in the Cooperative Sector 83
1. Entities Subject to Inspection and Applicable Provisions 83
2. Taking Possession 85
3. Compulsory or Mandatory Liquidation 86
4. Voluntary Liquidation 88
5. Common Issues 89
C. Companies Supervised by the Superintendency of Ports and Transportation 90
1. Compulsory Liquidation 90
2. Voluntary Liquidation 92
D. Companies Supervised by the Superintendency of Private Surveillance and Security 92
1. Judicial Liquidation 92
2. Voluntary Liquidation 94
E. Liquidation by the National Health Superintendency 94
1. Compulsory Liquidation 95
2. Voluntary Liquidation 100
F. Insolvency of a Natural Person 104
1. Natural Person as a Merchant 104
2. Non-Merchant Natural Person 105
3. Liquidation of Assets 110
CHAPTER 3
PROBLEMS IN LIQUIDATION AND INSOLVENCY PROCEDURES REGARDING LABOR RIGHTS, CURRENT MECHANISMS, AND PROPOSED IMPROVEMENTS 115
I. Difficulties in Settlement of Labor Claims 116
A. Notice to Workers 116
B. Organic Statute of the Financial Sector: Second Payment Opportunity 118
C. Objection Processing and Treatment of Disputed Obligations 120
D. Cooperatives 126
E. Secured Transactions 128
II. Mechanisms Currently Available to Workers to Seek Satisfaction of Their Rights 133
A. The Liquidator's Liability Regime 133
B. Partner Liability and Piercing the Corporate Veil 136
C. Action for Protection of Rights 142
D. Liability of the Parent Company or Controlling Company 148
E. Policies Guaranteeing Labor Rights 152
III. Proposals to Improve the Protection of Employee Claims 154
A. Individual Communication to Employees Regarding the Existence of the Process 155
B. Inventory of Assets and Liabilities as a Tool for Including Claims 157
C. Payment of Employee Claims Outside the Liquidation Process 161
D. Provisionof funds in cases of obligations
regarding which there is uncertainty 167
BIBLIOGRAPHY 171
