Italy's Court of Cassation rules on judicial liquidation of incorporated companies

The Italian Court of Cassation has ruled that a company incorporated into another can still be subject to an independent judicial liquidation procedure if the request is made within one year of the merger.

In decision no. 32884/2025, the Court clarified that even though a company is extinguished through incorporation, it retains its subjective identity and legal capacity to stand in court for up to one year following its cancellation. Consequently, the court determined that the judicial liquidation of an incorporated company is admissible even if the incorporating company has already undergone its own liquidation process.

The ruling specifically addressed a dispute regarding territorial competence, confirming that the Tribunal of Rome maintained jurisdiction over the incorporated company, regardless of the fact that the incorporating company's liquidation was being handled by the Tribunal of Perugia.