Dissolution of the company
Dissolution of the company
Commercial or non-commercial companies may cease to exist and be liquidated for voluntary or compulsory reasons. There are many reasons why a company should not continue to operate and its assets should be divided among its members, such as:
- Bankruptcy of the company.
- Failure to achieve set goals.
- Expiration time.
- A court order can also dissolve a company.
- If it is mentioned in the articles of association that the death of one of the partners causes the dissolution of the company, the death of one of them can also be one of the reasons for the dissolution of a company.
Effects of liquidation of a company
After the announcement of liquidation, the company’s property is suspended to be assigned to pay the debt, and then according to the capital and shares of the partners, this property is divided among them. At the time of dissolution, jobs and people are removed and only the liquidation manager can organize all matters in a specialized way. Shareholders and managers can only help him in this direction and can’t carry out executive activities. After the announcement of the liquidation of the company, only the executive activities and the projects that are underway should be completed, because the company is committed to the projects that it has accepted, and it must perform its duties in the best way until the end of the operation. After the dissolution, the new project and the cooperation agreement will not be concluded. At the time of the company’s liquidation, the company’s creditors became concerned and may go to the company and the liquidator to pursue their claims so that they can exercise their rights.
If you have any questions about the types of companies and their liquidation, or if you need guidance in executing a will or arranging its provisions, our experienced consultants and lawyers at the Asian Bar Association will answer your questions.
