Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
Dissolution and liquidation of a company

Dissolution and liquidation of a company

Dissolution does not immediately end all company relationships. Once a ground for dissolution arises, liquidation continues to deal with assets, receivables, debts and outstanding obligations. The liquidator or liquidators have the central role.

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Dissolution and liquidation of a company

Dissolution does not immediately end all company relationships. Once a ground for dissolution arises, liquidation continues to deal with assets, receivables, debts and outstanding obligations. The liquidator or liquidators have the central role.

Important aspects of this matter

Point 1

The ground for dissolution and whether it arises from an internal resolution, a court judgment or a statutory circumstance

Point 2

Current assets, debts, outstanding contracts and company litigation

Point 3

Appointment of the liquidator or liquidators and the limits of their authority

Point 4

Registering dissolution, collecting receivables, paying debts and dealing with remaining assets

Legal documents and decisions related to dissolution and liquidation of an Iranian company

Legal points and course of action

The law provides different grounds for dissolution according to the type of company. For joint-stock companies, Article 199 of the law amending part of the Commercial Code includes an extraordinary general meeting resolution, bankruptcy, and a final court judgment among the grounds for dissolution.

In every case, compare the company’s current registration records, internal documents and actual events. Similar case labels do not mean that the relief sought, opposing party or legal outcome will be the same.

Related topics

Frequently asked questions

No. Ceasing day-to-day activities does not necessarily mean that the company has been legally dissolved; the required formalities must be completed to end its registered status and complete liquidation.
During liquidation, the liquidator or liquidators take the steps needed to wind up the company’s affairs, collect receivables and pay debts.
No. Debts and claims must be addressed during liquidation; dissolution does not, by itself, extinguish the company’s obligations.

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