What is a reorganization?

Reorganization is one of the ways of formation or liquidation of legal entities. Five different forms of reorganization are distinguished - merger, separation, accession, transformation, separation.

The essence of company reorganization

Reorganization of enterprises is an integral attribute of a market economy. The reasons for the reorganization can be very different - this is the desire to get the company out of crisis, optimize tax payments or a way to expand the business.

The reorganization process is based on a succession, i.e. a person who ceases to operate is liquidated, and his rights and obligations are transferred to the assignee.

There are two ways of reorganization - it can be carried out both voluntarily and forcibly. Voluntary reorganization is carried out by decision of the meeting of participants in the LLC or the meeting of shareholders in the OJSC. Forced - only in cases established by law by decision of state bodies or in court.