Sucesores de Contigli, Héctor Mario c/ Ciencia al Servicio del Movimiento S.A. s/ incidente de medida cautelar (National Commercial Court of Appeals, 16/07/2008)
The effects of a merger by absorption on the legal personality of the absorbed company and on pending litigation. The court held that, once the merger is registered, the absorbed company ceases to exist and the surviving company succeeds to it universally; pending proceedings must continue against the successor rather than against an entity that has ceased to exist.
«Sucesores de Contigli, Héctor Mario c/ Ciencia al Servicio del Movimiento S.A. s/ incidente de medida cautelar»
What was at issue
The effects of a merger by absorption on the legal personality of the absorbed company and on pending litigation.
What was decided
The court held that, once the merger is registered, the absorbed company ceases to exist and the surviving company succeeds to it universally; pending proceedings must continue against the successor rather than against an entity that has ceased to exist.
- The court held that, once the merger is registered, the absorbed company ceases to exist and the surviving company succeeds to it universally; pending proceedings must continue against the successor rather than against an entity that has ceased to exist.
- The holding should be read in light of the legal interest protected in the area of mergers, not solely by reference to the documentary form of the act.
- Evidence of the specific facts and of their impact on corporate or creditor rights is decisive when applying the precedent’s doctrine to another case.
Citation: CNCom., «Sucesores de Contigli, Héctor Mario c/ Ciencia al Servicio del Movimiento S.A. s/ incidente de medida cautelar», 16/07/2008 — Jurisprudencia societaria y comercial
Practical application
It is a practical precedent for due diligence, pending litigation, and post-merger liability.
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