What is the reorganization of an enterprise?

Many of you already know what "liquidation of legal entities" is. Yes, this process has to be watched quite often, as some firms cease to exist almost every day. What in this case happens to their duties and rights? They just disappear. Of course, all this happens when the legitimate claims of creditors are satisfied in a lawful manner. Can a legal entity cease to exist, and its rights and obligations - no? Can. Only there is a place to be such not at liquidation, and at the process which is called "reorganization of the enterprise". In certain cases, it is better to resort to it than to try to completely remove the firm. What is good about the reorganization of the enterprise and in what forms does it take place? Let's deal with all these issues together.

Essence

As has been said, the essence of it is that there is a succession. It is possible not only the transfer of duties and rights, but also the transfer of debts. What is the reorganization of the enterprise? This is something that businessmen use so often to update their business, make it "cleaner", get away from the problems that have arisen with creditors, taxation 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.

Reorganization and liquidation of the enterprise are connected with the introduction and even with the removal of information from the Unified State Register of Legal Entities. Both these and other processes can be delayed for objective reasons very, very long.

Forms in which the reorganization of an enterprise takes place

When merging, two new organizations are formed. When dividing, on the contrary, two equal firms are formed from one company. Upon accession, one legal entity absorbs the other. And in the process of separation, one of the companies is separated from the other, taking with them not so much of the duties and rights as in the division.

Reorganization of the enterprise allows not only to get rid of problems, but also to update the business or make it more. Legal entities unite, increase their authorized capital in order to reach a whole new level and test themselves where they could not previously get. In other cases, on the contrary, they alienate a part of themselves in order to develop immediately in several directions.

As you know, almost every commercial legal entity has creditors whose opinions and wishes should be taken into account when making any important decisions. The decision on reorganization is taken at the general meeting. Features of its adoption depend specifically on the organizational and legal form in which there is a specific legal entity. Those founders who do not want to receive shares or a share in the authorized capital of a new firm (firms) may demand that they redeem what they have. Everything will be done in the same order that is determined by the Federal Law. The notification of creditors and the satisfaction of their claims are also required.