(1) When a conversion to or from a limited liability company pursuant to ORS 63.470 takes effect:
(a) The business entity continues its existence despite the conversion;
(b) Title to all real estate and other property owned by the converting business entity is vested in the converted business entity without reversion or impairment;
(c) All obligations of the converting business entity including, without limitation, contractual, tort, statutory and administrative obligations are obligations of the converted business entity;
(d) An action or proceeding pending against the converting business entity or its owners may be continued as if the conversion had not occurred, or the converted business entity may be substituted as a party to the action or proceeding;
(e) The ownership interests of each owner that are to be converted into ownership interests or obligations of the converted business entity or any other business entity, or into cash or other property, are converted as provided in the plan of conversion;
(f) Liability of an owner for obligations of the business entity shall be determined:
(A) As to liabilities incurred by the business entity prior to conversion, according to laws applicable prior to conversion; and
(B) As to liabilities incurred by the business entity after conversion, according to laws applicable after conversion, except as provided in paragraph (g) of this subsection;
(g) If prior to conversion an owner of a business entity was a partner of a partnership or general partner of a limited partnership and was personally liable for the business entity’s liabilities, and after conversion is an owner normally protected from personal liability, then such owner shall continue to be personally liable for the business entity’s liabilities incurred during the 12 months following conversion, if the other party or parties to the transaction reasonably believed that the owner would be personally liable and had not received notice of the conversion; and
(h) Unless the converted business entity is a partnership, the registration of an assumed business name of a business entity under ORS chapter 648 shall continue as the assumed business name of the converted business entity. If the converted business entity is a partnership, the converting business entity shall amend or cancel the registration of the assumed business name under ORS chapter 648, and the partners of the partnership shall register the name as an assumed business name under ORS chapter 648.
(2) Owners of the business entity that converted are entitled to:
(a) In the case of limited liability companies, only the rights provided in the plan of conversion; and
(b) In the case of owners of business entities other than limited liability companies, the rights provided in the plan of conversion and in the statutes applicable to the business entity prior to conversion, including, without limitation, any rights to dissent, to dissociate, to withdraw, to recover for breach of any duty or obligation owed by the other owners, and to obtain an appraisal or payment for the value of an owner’s interest. [1999 c.362 §35; 2001 c.315 §4]
Section: Previous 63.437 63.441 63.444 63.467 63.470 63.473 63.476 63.479 63.481 63.487 63.494 63.497 63.501 63.621 63.625 NextLast modified: August 7, 2008