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Simple English definitions for legal terms
statutory successor
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A quick definition of statutory successor:
A statutory successor is someone who takes over the rights, responsibilities, or position of another person or entity. This can happen when a corporation merges with or takes over another corporation, or when someone inherits property or assets from a deceased person. A universal successor takes over everything that belonged to the previous owner, while a particular successor only takes over specific things.
A more thorough explanation:
A statutory successor is a person or entity that succeeds to the assets, rights, and responsibilities of another person or entity according to the law. This can happen in various situations, such as:
- When a corporation is dissolved, its assets and liabilities are transferred to a statutory successor according to the state's corporation law.
- When a property owner dies without a will, their heirs become statutory successors and inherit their property.
- When a company merges with or acquires another company, the resulting entity becomes a statutory successor and assumes the rights and obligations of the merged or acquired company.
For example, if a corporation is dissolved, its assets and liabilities are transferred to a statutory successor according to the state's corporation law. This means that the successor becomes responsible for paying off the corporation's debts and distributing its remaining assets to the shareholders.