Reorganization by joining. Death or new life?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Due to the constant changes in the market, often one has to cease to exist, while the other has to adapt. One type of "survival" is reorganization by affiliation. Undoubtedly, many are wondering if this is really the end for the firm or a new, common beginning.

Each merger of a legal entity, be it a huge corporation or a company of equal size, is unique. It is important to understand that in the process of reorganization the company continues to exist and, quite likely, can increase its working capital. Liquidation is the complete termination of the activities of a legal entity.

Although in such cases there is no formation of a new company, nevertheless, careful work is carried out with the documentation - everything must be legally confirmed. Only after the information on the accession of one of the companies has been entered into the Unified State Register of Legal Entities, the procedure can be considered completed. It should be noted that the reorganization by joiningquite often carried out under the supervision of the FAS, and in some cases you may be asked to obtain approval before you form a single company.

It is important to know that the liquidation of an LLC, a merger and other issues that can seriously affect the fate of an organization are discussed only at meetings of shareholders or founders. Only a unanimous decision of all members of the society on the issue can start the whole process.

If during the discussion some of the founders are absent or vote against the decision, they have the right to demand the redemption of their shares or shares by other members of the company. The reorganization by affiliation is divided into several stages, the first of which is the assessment of the value of the property of the company and its assets. The next step will be the signing of an agreement on the procedure and conditions for the merger of two or more firms. Joint-stock companies carry out additional conversion of shares.

The third stage begins after the decision is made and lasts no more than three days. During this time, you must notify the tax authorities, creditors and officially publish your decision in print media. When the assets do not exceed 100,000 minimum wages, it is enough to send the same notification to the antimonopoly committee. But if the level exceeds the established bar, then you must obtain approval for the merger from the FAS. Reorganization by joining

is considered completed when all changes are documented, and entries are made in the Unified State Register of Legal Entities stating thatthat one of the firms joined the other.

As you can see, the process is quite complicated and requires not only careful study, but also knowledge of all the subtleties. Today, there are many qualified companies that are ready to assist you in this matter. You and your employees will be relieved of the burden of responsibility for preparing documents, organizing a general meeting, drawing up a transfer act, conducting an inventory and independently performing the rest of the registration and merger procedures.