diff --git a/reactos/base/system/services/database.c b/reactos/base/system/services/database.c
index dbbaf0aadeb..98917d5e560 100644
--- a/reactos/base/system/services/database.c
+++ b/reactos/base/system/services/database.c
@@ -416,8 +416,7 @@ ScmDeleteServiceRecord(PSERVICE lpService)
         ScmDereferenceServiceImage(lpService->lpImage);
 
     /* Decrement the group reference counter */
-    if (lpService->lpGroup)
-        lpService->lpGroup->dwRefCount--;
+    ScmSetServiceGroup(lpService, NULL);
 
     /* FIXME: SecurityDescriptor */
 
diff --git a/reactos/base/system/services/groupdb.c b/reactos/base/system/services/groupdb.c
index 50db8d35ed0..b27185d867c 100644
--- a/reactos/base/system/services/groupdb.c
+++ b/reactos/base/system/services/groupdb.c
@@ -33,11 +33,26 @@ ScmSetServiceGroup(PSERVICE lpService,
 
     if (lpService->lpGroup != NULL)
     {
-        lpService->lpGroup->dwRefCount--;
-
-        /* FIXME: What do we have to do when dwRefCount is 0? */
+        ASSERT(lpService->lpGroup->dwRefCount != 0);
+        ASSERT(lpService->lpGroup->dwRefCount == (DWORD)-1 ||
+               lpService->lpGroup->dwRefCount < 10000);
+        if (lpService->lpGroup->dwRefCount != (DWORD)-1)
+        {
+            lpService->lpGroup->dwRefCount--;
+            if (lpService->lpGroup->dwRefCount == 0)
+            {
+                ASSERT(lpService->lpGroup->TagCount == 0);
+                ASSERT(lpService->lpGroup->TagArray == NULL);
+                RemoveEntryList(&lpService->lpGroup->GroupListEntry);
+                HeapFree(GetProcessHeap(), 0, lpService->lpGroup);
+                lpService->lpGroup = NULL;
+            }
+        }
     }
 
+    if (lpGroupName == NULL)
+        return ERROR_SUCCESS;
+
     GroupEntry = GroupListHead.Flink;
     while (GroupEntry != &GroupListHead)
     {