Practice question
Company C has a pending collection suit and unpaid receivables when it consolidates with D into newly formed E under a valid effective statutory consolidation. E claims it inherits only buildings, not choses in action or the ability to continue C's suit. Which is best?
- Only buildings ever vest in a consolidated corporation
- Receivables and other choses in action vest in E, and the pending claim may continue by E
- C's debtors automatically receive a gift
- Every suit must be abandoned
- The directors personally acquire C's receivables
Legal references
- RA11232, Section79: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463
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