"I know that the deceased shareholder's mother keeps the the title to the company's car, but as of today the car was not sold and it is still in the company's name. After the death of the partner, the living shareholder withdrew 12000 from the company's bank account to cover the funeral costs."

That's called Theft. Both activities are theft = corporate assets for personal gain or use.

Everyone needs to be told that the corporation is its own entity. They are treating that as an estate, but the corporation is not part of the estate. The deceased's ownership of Shares is all that is in the estate.

You don't wholly absorb a corporation into a human. You still have a separate entity. If everyone who owns Ford stock were to die, Ford still exists.