As a legal procedure for restructuring a business, the division of a Romanian company assumes that the latter goes through the process of dissolution (part of the process of ceasing its existence), but without getting to liquidation (the process by which the company’s assets are transferred to its shareholders, after all other debts have been paid).
In other words, the old company will cease to exist (the same as in the case of liquidation), but the assets of the company are not transferred to the ownership of each of the shareholders. They are transferred to other companies (other businesses).
The process through which the division of a company takes place is regulated in the Romanian legislation by the Companies Law (Law no. 31/1990), and anyone wishing to go through this process must be aware of the following five important aspects about this mechanism.
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