Eventually, it may happen that the company has to be extinguished, with the ensuing liquidation. The owners will receive the resulting positive balance, if any, of assets and liabilities.
To extinguish companies, their winding-up and subsequent liquidation must be carried out. The winding-up is right and proper in various cases: When the term set by the partners when forming the company has expired, because the corporate purpose has been fulfilled, due to a loss of its capital, as a result of an insolvency procedure, due to the impossibility of achieving the corporate purpose, due to the paralysis of its governing bodies in such a way that its operations are impossible, or due to the reduction of its share capital below the legal minimum.
The liquidation of net assets will be reimbursed to the partners in accordance with what was agreed upon when the company was incorporated.
