Control balance sheet

A control balance sheet (kontrollbalansräkning) is a special balance sheet that the board of a limited company (aktiebolag, AB) is obliged to prepare when there is reason to believe that the company's equity is less than half of its registered share capital. It must be prepared immediately and reviewed by the company's auditor, if the company has one.

In the control balance sheet, assets may be valued at their sale value and certain liabilities may be stated at a lower amount, which often gives a better result than the ordinary balance sheet. If it still shows that more than half of the capital has been used up, the board must call a first control general meeting (kontrollstämma).

A second control general meeting must be held within eight months of the first. If the capital has not been fully restored, the meeting must decide on liquidation, and if it does not, the board must apply to the district court (tingsrätt) for liquidation. If the board fails to follow the rules, its members can become personally liable for the debts the company incurs while they delay.