Search results
Results From The WOW.Com Content Network
Here, ‘successor’ refers to the entity that exists after the restructuring. ‘Restructuring’ refers to any action that alters the identity or character of a business entity (e.g. a merger). Successor liability is a subset of the law governing corporate liability or liability of legal persons.
The problem of successor liability arises when a company does something that alters its organisation or identity, such as a name change or a merger or acquisition. Rules on successor liability determine when and how corporate liability is affected by various changes in a company’s organisation or identity.
In the case of a merger, the surviving organization is the legal successor to the others in respect to liability. [1] In the case of dissolution without assigning a legal successor, the funds and assets of the dissolved entity may be granted to other entities. The latter entities are not legal successors, but simply as grantees of the mentioned ...
Liability of the successor corporation, in reference to third parties, is another consideration. In a sale-of-assets debt, present and possible, stay with the old corporation instead of transferring, even if the purchasing corporation continues similar business.
The UATRA is meant to be a successor to the Uniform Comparative Fault Act as a way to apportion liability in negligence cases. The UATRA was designed to overcome the low popularity of the Uniform Comparative Fault Act by modifying the usage of joint and several liability among multiple tortfeasors. [1]
In company law, perpetual succession is the continuation of a corporation's or other organization's existence despite the death, bankruptcy, insanity, change in membership or an exit from the business of any owner or member, or any transfer of stock, etc. [1]
A successor company takes the business (products and services) of a previous company or companies, with the goal to maintain the continuity of the business. To this end, the employees, board of directors, location, equipment, and even product name may remain the same or change only slightly at the moment of succession.
A corporation sole is a legal entity consisting of a single ("sole") incorporated office, occupied by a single ("sole") natural person. [1] [2] This structure allows corporations (often religious corporations or Commonwealth governments) to pass without interruption from one officeholder to the next, giving positions legal continuity with subsequent officeholders having identical powers and ...