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What is the effect of the transformation of a commercial entity (e.g., from an establishment to a company) on the obligations of the former entity towards third parties?

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Upon the transformation of a commercial entity into another entity, the new entity succeeds its predecessor in rights and obligations. The predecessor remains jointly and severally liable with the successor for the fulfillment of these obligations towards third parties, unless it is proven that the statutory procedures for transferring liability...

Upon the transformation of a commercial entity into another entity, the new entity succeeds its predecessor in rights and obligations. The predecessor remains jointly and severally liable with the successor for the fulfillment of these obligations towards third parties, unless it is proven that the statutory procedures for transferring liability and notifying third parties have been followed.
Source: Radiif.com (رديف) · Saudi Legal AI Platform

Legal References & Citations

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نظام الأسماء التجارية - Article 9

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