§ 59-73.13. Effects of conversion.

459 words·~2 min read·/nc/chapter-59/59-73-13

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)When the conversion takes effect:

(1)The converting business entity ceases its prior form of organization and continues in existence as the resulting domestic partnership;

(2)The title to all real estate and other property owned by the converting business entity continues vested in the resulting domestic partnership without reversion or impairment;

(3)All liabilities of the converting business entity continue as liabilities of the resulting domestic partnership;

(4)A proceeding pending by or against the converting business entity may be continued as if the conversion did not occur; and

(5)The interests in the converting business entity that are to be converted into interests, obligations, or securities of the resulting domestic partnership or into the right to receive cash or other property are thereupon so converted, and the former holders of interests in the converting business entity are entitled only to the rights provided in the plan of conversion.

The conversion shall not affect the liability or absence of liability of any holder of an interest in the converting business entity for any acts, omissions, or obligations of the converting business entity made or incurred prior to the effectiveness of the conversion. The cessation of the existence of the converting business entity in its prior form of organization in the conversion shall not constitute a dissolution or termination of the converting business entity.

(b)When the conversion takes effect, the resulting domestic partnership is deemed:

(1)To agree that it may be served with process in this State for enforcement of

(i)any obligation of the converting business entity and

(ii)any obligation of the resulting domestic partnership arising from the conversion; and

(2)To have appointed the Secretary of State as its agent for service of process in any such proceeding. Service on the Secretary of State of any such process shall be made by delivering to and leaving with the Secretary of State, or with any clerk authorized by the Secretary of State to accept service of process, duplicate copies of the process and the fee required by G.S. 59-35.2. Upon receipt of service of process on behalf of a resulting domestic partnership in the manner provided for in this section, the Secretary of State shall immediately mail a copy of the process by registered or certified mail, return receipt requested, to the resulting domestic partnership. If the resulting domestic partnership is a registered limited liability partnership, the address for mailing shall be its principal office or, if there is no principal office on file, its registered office. If the resulting domestic partnership is not a registered limited liability partnership, the address for mailing shall be the mailing address designated pursuant to G.S. 59-73.12(a)(2). (2001-387, s. 108; 2001-387, s. 170(c).)