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Enterprise reorganization

Undoubtedly, reorganization entails the transfer of certain rights and obligations from one subject of legal relations to another. In some cases, the founders (participants) of the legal entity, if necessary, will notify the creditors, who in turn have the right to demand the termination or early performance of the obligations, the debtor for which is the reorganized legal entity, and in return the damages.

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It is important to know that the reorganization is carried out only by the decision of the founders (participants) or by the body of the legal entity authorized to reorganize the constituent documents.

Reorganization of legal entities can be in the following forms:

  1. Merger is by far the most common way of reorganization, in which one or more legal entities are merged into one, thereby reorganizing into a single legal entity;
  2. Accession is the form in which one or more legal entities join an existing legal entity;
  3. Separation is the form by which a legal entity terminates its activities by dividing it into two or more legal entities;
  4. Allocation is a form in which two or more legal entities are allocated from one legal entity;
  5. Transformation is the form by which the organizational legal form of a legal entity is transformed.
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