economy

Reorganization is a merger, accession, division, isolation

Reorganization is a merger, accession, division, isolation
Reorganization is a merger, accession, division, isolation

Video: How was India Formed | Princely States and Jammu and Kashmir 2024, July

Video: How was India Formed | Princely States and Jammu and Kashmir 2024, July
Anonim

There are a lot of legal entities in our country. They appear and disappear daily. How to create a new company? It may appear after registration, that is, a process whose stages are prescribed in the legislation or as a result of the reorganization of some other legal entities.

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Reorganization is something that is often confused with liquidation. In fact, such confusion is inappropriate. Why? The reason is that there is no succession in liquidation during liquidation, but during reorganization it always exists. What is a succession? This is a transfer of duties and rights previously owned by a particular legal entity (or persons). In the case of liquidation, they simply disappear immediately after the company settles with the creditors, and information about it will be deleted from the registry, that is, from the register. Reorganization is something at which neither one nor the other disappears completely, but continues to exist.

There are several varieties of this process. Each of them has its own characteristics. Consider all of this.

Reorganization of an enterprise is an accession, division, spin-off, merger. Somewhere it's easier to do, but somewhere it's much harder.

Reorganization-affiliation from other similar processes differs in that another organization joins one large organization, which is smaller than it in terms of rights, obligations and so on. As a result of this process, a small business will cease to exist, information about it will be deleted from the Unified State Register of Legal Entities, and duties and rights will be transferred to the organization to which it was affiliated.

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A merger combines two identical or relatively identical legal entities. Their rights and obligations are combined, both old organizations cease to exist, and instead one appears, which is relatively new.

Reorganization is a process that can be carried out in the form of separation. In this case, one legal entity, ceasing to exist, leaves behind two new organizations that did not previously exist. Of course, it is precisely with them that his duties and rights remain.

The last variation of the process under consideration is isolation. Here, part of the duties and rights of the legal entity is transferred to the new organization. However, the primary organization does not cease to exist.

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Reorganization is a process in which it is important to understand the situation in which the founders and shareholders will find themselves after its completion. Of course, it is important to consider the interests of each of them. How to do it all right? Initially, you need to notify people about the beginning of the process. Both registered letters and publications in the press are used for this. In the future, each of them will have the opportunity to get everything that is due on their hands (or take shares / stakes in the authorized capital of that legal entity that appeared instead of the reorganized one). In fact, these people in this case at the legislative level are given quite a lot of rights.

Now you have the basic information about a process like reorganization!