Companies Law

1. Upon termination, a company shall enter into liquidation in accordance with the provisions of this Law. The partners, general assembly, or shareholders shall initiate liquidation proceedings and the company shall retain its legal personality to the extent necessary for liquidation. 2. If a company is terminated for any of the reasons stipulated in this Law, the company’s partners, shareholders, managers, or board of directors, as the case may be, must prepare the statement referred to in Article 242(1) of this Law, unless such statement was prepared prior to the company’s termination and the date on which it was prepared does not exceed 30 days. 3. If a company is terminated and its assets are not sufficient to pay its debts, or if it is distressed under the Bankruptcy Law, it shall petition the competent judicial authority to initiate any liquidation proceedings under the Bankruptcy Law. 4. If a company is liquidated in violation of the provisions of this Article, the company’s partners, shareholders, manager, or board members, as the case may be, shall be jointly and severally liable for any remaining debt owed thereby. 5. A public non-profit company may not be liquidated without obtaining the Companies Law approval of the Ministry.