Reactivation as an Exceptional Legal Mechanism within the Popular and Solidarity Economy: Regulatory Scope and Procedure

Resolution No. SEPS-IGT-IGS-IGJ-INFMR-INGINT-2025-0244 introduces a relevant legal mechanism for organizations within the Popular and Solidarity Economy in Ecuador: reactivation during the process of dissolution and liquidation. This regulation is grounded in the constitutional recognition of the economic system as social and solidarity-based, aimed at preserving viable organizational structures that fulfill an economic and social function.

Reactivation establishes as an exceptional and regulated measure, subject to technical and legal assessment by the Superintendency of Popular and Solidarity Economy. Its scope of application includes organizations from the community, associative, and cooperative sectors, as well as integration bodies, provided that they are undergoing ordinary liquidation proceedings. The regulation expressly excludes summary liquidation processes, cases of repeated regulatory non-compliance, the existence of final and enforceable judicial decisions ordering dissolution, and situations involving irreversible loss of equity.

Pursuant to the Resolution, reactivation shall be admissible upon the occurrence of any of the following circumstances: a request submitted by at least fifty percent (50%) of the members or associates; a request submitted by the liquidator; or when no more than one year has elapsed since the liquidator’s appointment. In all cases, it must be demonstrated that the causes arise to the liquidation have been remedied and that real conditions exist for the effective fulfillment of the organization’s corporate purpose.

The procedure requires the submission of updated financial information, tax and labor compliance certifications, evidence of sufficient assets, and a technical-legal analysis supporting the organization’s viability. If the assessment is favorable, the Superintendency of Popular and Solidarity Economy shall resolve to approve the reactivation and order the election and registration of new governing authorities, thereby allowing the orderly resumption of activities.

At Quevedo & Ponce, we support to Popular and Solidarity Economy organizations seeking to overcome liquidation processes by providing comprehensive legal advice and technical representation before the Superintendency of Popular and Solidarity Economy, in order to reach an orderly, secure, and legally compliant reactivation.