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20. Reorganization of a legal entity
The reorganization of a legal entity means a significant change in the legal status of a legal entity in cases of separation, accession and transformation, and the termination of a legal entity in cases of merger and division.
Types of reorganization of a legal entity:
1) merger, when two or more legal entities merge into one legal entity;
2) accession, when one legal entity absorbs another and itself continues to function;
3) division, when one legal entity as a result of division forms several new legal entities, and the originally existing legal entity ceases to exist;
4) separation, in which another legal entity is separated from a legal entity, and the originally existing legal entity continues to exist; this type of reorganization is most often used when separating a legal entity in the event of separation of a branch of a legal entity;
5) transformation, in which a legal entity passes from one legal form to another.
There are two types of reorganization of a legal entity: voluntary and forced.
The reorganization of a legal entity may be carried out by decision of its founders (participants) or by the body of the legal entity authorized to do so by the founding documents. In cases established by law, the reorganization of a legal entity in the form of its division or separation of one or more legal entities from its composition is carried out by decision of authorized state bodies or by a court decision. Compulsory separation or division of a legal entity is carried out by the court at the initiative of the antimonopoly body in cases provided for by the antimonopoly legislation.
The transfer deed and separation balance sheet: must contain provisions on the succession of all obligations of the reorganized legal entity in relation to all its creditors and debtors, including obligations disputed by the parties. The transfer act and separation balance sheet are drawn up after the inventory, since at the time of reorganization of the legal entity, complete information about the composition of the legal entity’s property and its accounts must be obtained.
The deed of transfer and the separation balance sheet are approved by the founders (participants) of the legal entity or the body that made the decision on the reorganization of legal entities, and are submitted together with constituent documents for state registration of newly established legal entities or amendments to the constituent documents of existing legal entities.
During the reorganization of a legal entity, the rights of its creditors must be guaranteed.
Author: Sazykin A.V.
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