- Governance - Commitments
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To be calculated
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15 minutes
Theoretical penalty(s) of non-compliance subject to the judge's discretion and, where applicable, to certain conditions
- 1 DissolutionDissolution - Where the session of the meeting does not hold and where the meeting fails to deliberate validly upon the last invitation, any party concerned may bring an action before the court for the winding up of the company.
Convening of the extraordinary general meeting to decide on the early dissolution of the company
Scope of application
This obligation applies to the following entities:
- Partnership Limited by shares
- Limited liability company (SARL)
- Public limited company with board of directors
- Public limited company with a management board
- Joint stock company
- European company
Description
If, as a result of losses noted in the accounting documents, the equity of the company becomes less than half of the share capital, the chairman, the manager, the board of directors or the management board, as the case may be, shall be required, within four (4) months of the approval of the accounts showing such loss, to convene an extraordinary general meeting for the purpose of deciding whether to dissolve the company prematurely or to continue its activity by reconstituting the equity capital.
If the company is not dissolved, it must reduce its share capital to a minimum of 1% of total assets (or €37,000 for public limited companies) by the end of the second financial year following the year in which the losses were incurred.
Authority
Commercial court
Responsible(s)
Partner / Manager
