§ 38.2-1426. Application of earnings tests
If the issuing, assuming or guaranteeing business entity has not been in operation for the entire period for which earnings are being applied pursuant to § 38.2-1424, the earnings tests shall be based upon pro forma statements incorporating statements of any predecessor or constituent business entity for that portion of the earnings tests period that the current business entity was not in operation, if:
1. The current business entity was formed as a consolidation or a merger of two or more business entities, at least one of which was in operation at the beginning of the period; or
2. The current business entity has acquired all of the assets of a business entity or any division or other unit of a business entity that was in operation at the beginning of the test period.
(1983, c. 457, § 38.1-217.29; 1986, c. 562; 1992, c. 588; 2000, c. 155; 2002, c. 147.)
Sections: Previous 38.2-1419 38.2-1420 38.2-1421 38.2-1422 38.2-1423 38.2-1424 38.2-1425 38.2-1426 38.2-1427 38.2-1427.1 38.2-1427.2 38.2-1427.3 38.2-1428 38.2-1429 38.2-1430 NextLast modified: April 16, 2009