Rulevar 518 can disable this option. If a unit is empty and contains no subformations it can be disbanded.
This will cause the unit to be removed and the regime to receive rulevar 46 PP in case of a normal unit and rulevar 47 PP in case of a HQ being disbanded.
Furthermore if a HQ is disbanded any of its subordinate units will receive a readiness penalty specified in rulevar 48, which is the same penalty they would have gotten if they had severed the link with the HQ themselves or been assigned a different HQ.