The different reasons for the disappearance of a company

A business can be forced to disappear for several reasons. A distinction is essentially made between reasons of internal origin (will of the partners or provision of the articles of association) and those of external origin (court decision, criminal sanction, etc.). Note that it is only possible to close your company yourself if the financial situation of the company is healthy. Otherwise, the courts have jurisdiction.

The reasons of internal origin

The partners can be at the origin of the disappearance of their company. Among the different reasons that exist at this level, we can distinguish in particular the early closing and the application of a clause of the articles of association. In the first case, the partners decide to put an end to the company. They can do so at any time in advance or at the end of the term of the company. In the latter case, non-prorogation automatically entails dissolution.

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In the second case, it is a clause previously inserted in the articles of association which produces its effects and leads to the closure of the company. It is possible to foresee that the occurrence of a particular event will put an end to the existence of the company. Finally, any partner can apply to the court for the dissolution of a company if he demonstrates the existence of a just cause. It can be a misunderstanding between partners paralyzing the operation of the company for example or the non-performance of the obligations of another partner.

Reasons of external origin

Other reasons can also lead to the disappearance of a company. This is, for example, the combination of all corporate titles in the hands of a single person except for SAS and SARL which naturally evolve into SASU/EURL or the completion of the corporate purpose. The same rules apply when the corporate purpose becomes impossible.

The closure of a company can be imposed on the partners, in application of a court decision. Judges can, in fact, decide to close a business by ordering the cancellation of the partnership contract or its judicial liquidation. In the latter case, they must ensure, beforehand, that it is impossible to straighten it. Finally, dissolution can be pronounced as a penal sanction. The cases are multiple, they result from the commission of offenses or offenses fraud, abuse of weakness or trust, concealment, drug trafficking, etc.