A company liquidation in Lebanon implies either the process of a company dissolution, ending it and redistributing its assets and property to its shareholders, or a merger sale of the business. In this article, our company formation advisors in Lebanon make a brief overview of the company liquidation in this country.
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Liquidation of a joint liability company in Lebanon
In case the articles of association of such a company do not name a liquidator and the partners do not agree on appointing one, it is the court’s decision and responsibility to appoint a liquidator for the legal entity.
During the liquidation time frame, the company will continue to maintain its legal entity and the liquidator will act as the manager.
Liquidation of a partnership limited by shares in Lebanon
A partnership limited by shares in Lebanon is not dissolved if one of the partners withdraws, but because of one of these reasons:
• The end of its specified term;
• The end of the project for which it was set up;
• The elimination of the object of the business;
• The elimination of its capital or of one of the two types of partners;
• The impossibility of ending the project for which is was set up;
• The partners’ wish to dissolve the business prior to its end of its term, with the individual approval of the accredited partners;
• The capacity loss or bankruptcy of an accredited partner;
• Other reasons: our Lebanon company formation consultants can provide more details on what these other reasons may consist of.
Liquidation of a limited liability company in Lebanon
A limited liability company can be liquidated in Lebanon because of one of these reasons:
• The termination of its term as declared in the articles of incorporation;
• The termination of an anticipated project for which it was set up, or the impossibility of completing it, or the elimination of its object;
• The business is not transformed in another type of partnership or joint stock company when there are less than three or more than thirty partners, or when its capital becomes smaller than five million Lebanese pounds;
• The business can be dissolved anytime through a unanimous decision made by the partners. Dissimilar to joint-stock entities, a limited liability company is not dissolved after the bankruptcy of one of the partners, as long as there are three or more remaining partners;
• Other reasons: our company registration agents in Lebanon can provide more information on what these other reasons can be. We can also help you to open a company in Lebanon.
If you have further questions about a company dissolution in Lebanon, or for setting up offshore companies in Lebanon, please contact us.