Reorganization of enterprises

 

According to the legislation of Ukraine reorganization is a form of termination of a legal entity as a result of the conclusion of the various types of corporate agreements.

 

Types of reorganization processes:

• Merge - provides termination of two (or more) enterprises as legal entities and transferring all their property rights and obligations to the new company - a legal entity that is created as a result of the reorganization.

• Joining - involves the termination of an enterprise as a legal person and the transferring of the property rights and obligations to another entity - a legal entity.

• Division - provides termination (liquidation) of a company as a legal entity and transmission of all of its property rights and obligations to several companies - entities that are created as a result of the reorganization by distribution act (balance) in the relevant parts. Thus, the company that operated prior to the reorganization is liquidated, but instead of it two or more new independent businesses are created.

• Separation – is a selection of the unit (units) of the enterprise (association) and creation of an independent enterprise on its basis or enterprise’s leaving the association.

• Conversion - involves changing the legal form and type of the company. When one enterprise converts to another new company, this new company acquires all property rights and obligations of the reorganized company. The transformation may involve complications of legal form (limited liability company may be reorganized into the public joint stock company or private joint stock company, - the private joint stock company may be reorganized into public joint stock company, etc.) or simplification (inverse transformation).

 

SBC company provides services of registration of any changes of legal entity which are related with the reorganization or changing of ownership.