1. officially end an organization or legal agreement, disappear
dissolve tension/a company/parliament/marriage
The main theme that runs through the various uses of this word is of something disappearing entirely or ceasing to exist. For example, if you 'dissolve' sugar in boiling water it does not stop working, it disappears or is no longer visible. If you 'dissolve' a business it does not just cease operations, it no longer exists. This versatile expression can be used in social, scientific or professional contexts. Due to the fact that it is quite formal, it is not overly common.