Many of you already know what "liquidation of legal entities" is. Yes, this process has to be observed quite often, since some firms cease to exist almost every day. What happens in this case with their duties and rights? They simply disappear. Of course, all this happens when the legitimate claims of the creditors are legally satisfied. Can a legal entity cease to exist, but its rights and obligations - no? Can. Only this takes place not in liquidation, but in a process called "enterprise reorganization". In certain cases, it is better to resort to it than to try to completely remove the company. How good is the reorganization of the enterprise and in what forms does it take place? Let's understand all these issues together.
Essence
As already mentioned, its essence lies in the fact that succession takes place. Not only the transfer of duties and rights, but also the transfer of debts is possible. What is an enterprise reorganization ? This is what is so often used by businessmen in order to update their business, to make it “cleaner”, to get away from problems that arose with creditors, tax and so on. As a result, they will have the opportunity to continue the same activity under a new name and with an updated history.
The reorganization and liquidation of the enterprise is associated with the entry and even removal of information from the register. Both this and the other process can drag on for objective reasons for a very, very long time.
Forms in which the reorganization of the enterprise
When merging from two organizations, one new enterprise is formed. In the division, on the contrary, two equal firms are formed from one company. Upon joining, one legal entity absorbs another. And in the process of spin-off, one of the companies is separated from the other, taking with it a not so significant part of duties and rights, as in the separation.
The reorganization of the enterprise allows not only to get rid of problems, but also to update your business or make it bigger. Legal entities unite, increase their authorized capital in order to reach a whole new level and test themselves where previously could not get. In other cases, on the contrary, they alienate part of themselves in order to develop in several directions at once.
As you yourself know, almost every commercial legal entity has creditors whose opinions and wishes must be taken into account when making any important decisions. The decision on reorganization is taken at the general meeting. The features of its adoption depend already specifically on the legal form in which a specific legal entity exists.
Those founders who do not want to receive shares or a share in the authorized capital of a new firm (s) may demand to buy back what they have. Everything will be produced in the same order as defined by federal law. Notification of creditors and satisfaction of their requirements is also mandatory.