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The Texas two-step allows solvent companies to shield their assets from litigants using protections that are normally reserved for bankrupt companies. [1] The goal of a Texas two-step is for the parent company to gain a third-party release of all liabilities it assigned to its spinoff, thus preventing litigants from pursuing those claims ...
A corporate group is composed of companies. The general rule is that a company is a separate legal entity from its shareholders, that is the shareholder's liability for the subsidiary's debts is limited to the value of the shares, [3] and the shareholders cannot be required to perform the company's obligations.
De facto corporation and corporation by estoppel are both terms that are used by courts in most common law jurisdictions to describe circumstances in which a business organization that has failed to become a de jure corporation (a corporation by law) will nonetheless be treated as a corporation, thereby shielding shareholders from liability.
The process allowed by Texas law lets a company create a separate subsidiary to take over liabilities, with the existing company operating normally. The new company, with a different name, can locate in a state such as North Carolina where bankruptcy laws are different, and then declare bankruptcy, paying less than the original company would have.
A subsidiary, subsidiary company, or daughter company [1] [2] [3] is a company completely or partially owned or controlled by another company, called the parent company or holding company, which has legal and financial control over the subsidiary company.
A subsidiary of the Panda Restaurant Group, Panda Express started in 1973 as a formal sit-down restaurant called Panda Inn in Pasadena, California. ... joined the company, the restaurant group ...
In 2001, an 18-year-old committed to a Texas boot camp operated by one of Slattery’s previous companies, Correctional Services Corp., came down with pneumonia and pleaded to see a doctor as he struggled to breathe. Guards accused the teen of faking it and forced him to do pushups in his own vomit, according to Texas law enforcement reports ...
A series limited liability company, commonly known as a series LLC, protected cell company, segregated account company, or segregated portfolio company, and sometimes abbreviated as SLLC, is a form of a limited liability company that provides liability protection across multiple "series" each of which is theoretically protected from liabilities arising from the other series.