In Spain, the dissolution and liquidation of a company become compulsory when it faces insolvency, continuous losses, or failure to meet legal requirements. Companies must adhere to specific procedures to avoid penalties and ensure proper closure. Understanding when and how to initiate this process is crucial for compliance and protecting stakeholders.
In times of crisis, companies may find themselves in a legal cause for dissolution. In this article, we analyse when they should initiate a bankruptcy proceeding and when they should opt for the dissolution and liquidation of the company.
The liquidation of a company in Spain is a legal option chosen in a shareholder’s meeting. It leads to the splitting of the company’s assets after complying with its obligation of payment to creditors.
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