Following a legally effective reorganisation, business contracts generally continue with the company that remains in existence or its legal successor. Whether the other party must consent or a notification or contract amendment is required depends on the type of reorganisation and the individual contract. Employment relationships do not end solely because of a change of legal form or the entry of a legal successor. For each employee, it must be established which company will be the employer after the restructuring and which rights and obligations will continue. By contrast, operating licences and permits must not be treated as automatically transferable across the board. Their continued validity depends on the type of reorganisation and the rules governing the relevant authorisation. Whether a company name and identification number may continue to be used depends on whether the legal entity remains in existence or a new one is created. A change of legal form generally preserves the company’s identity, but may require the company name to be adapted to the new legal form. Trademarks, patents and designs generally continue to exist, but must be clearly allocated to the rights holder that remains in existence or succeeds to them. Changes to the holder’s name or to the rights holder must be recorded in the relevant intellectual property registers.
Continuing Business Relationships After a Reorganisation in Georgia
Business continuity after a reorganisation in Georgia depends on which legal entity remains in existence or becomes the legal successor. Contracts, employment relationships, permits, business identifiers and intellectual property rights must therefore each be reviewed for their continued validity, allocation and any required changes.
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