The impact of Company’s Transformation on its Legal Personality: A Comparative analytical study

Companys transformation is a process carried out by the company during its existence. The purpose of transformation of a company is either to expand its activity so that they might become more economically important or to avoid termination and the consequences of the termination on financial liquidation and the legal personality has expired . Transformation has two meanings : either can be used in a broad or narrow sense. In a narrow sense, transformation refers to the change of the legal from of the company . But in the broader sense, transformation means a whole change of the legal system to which the company is subject , whether the change was accompanied by a change in its legal form or not.Transformation in its narrow sense, is tackled by company laws only. On the other hand, transformation, in its broader sense, is dealt by , in addition to company laws, specific laws because the transformation is accompanied by a change in the legal system of the company so it becomes subject to the specific law due to privatization, or to the general laws due to nationalization . It turns out that transformation, in the two senses, leads to terminate the moral personality of the company and the appearance of the a new company, which replaces the old company, and becomes a successor which takes all the obligations and privileges of the old company. The research concludes that transformation, in practice, leads to many problems , and the legislator does not solve these problems with clear legal texts. The research presents recommendations to the legislator which may help solve the problems mentioned at the beginning of the research.