2023 District of Columbia Code › Title 29 - Business Organizations. [Enacted title] › Chapter 3 - Business Corporations › Subchapter IX - Merger and Share Exchanges › § 29–309.07. Effect of merger or share exchange

§ 29–309.07. Effect of merger or share exchange.
(a) When a merger becomes effective:
(1) The corporation that is designated in the plan of merger as the survivor shall continue or come into existence, as the case may be;
(2) The separate existence of every corporation that is merged into the survivor shall cease;
(3) All property owned by, and every contract right possessed by, each corporation that merges into the survivor shall be vested in the survivor without reversion or impairment;
(4) All liabilities of each corporation that is merged into the survivor shall be vested in the survivor;
(5) The name of the survivor may, but need not be, substituted in any pending proceeding for the name of any party to the merger whose separate existence ceased in the merger;
(6) The articles of incorporation of the survivor shall be amended to the extent provided in the plan of merger;
(7) The articles of incorporation of a survivor that is created by the merger shall become effective; and
(8) The shares of each corporation that is a party to the merger, and the interests in an eligible entity that is a party to a merger, that are to be converted under the plan of merger into shares, other securities, eligible interests, obligations, rights to acquire shares, other securities, or eligible interests, cash, other property, or any combination of the foregoing, shall be converted, and the former holders of such shares shall be entitled only to the rights provided to them in the plan of merger or to any rights they may have under subchapter XI of this chapter.
(b) When a share exchange becomes effective, the shares of the acquired corporation that are to be exchanged for shares or other securities, eligible interests, obligations, rights to acquire shares or other securities, or eligible interests, cash, other property, or any combination of the foregoing, shall be entitled only to the rights provided to them in the plan of share exchange or to any rights they may have under subchapter XI of this chapter.
(c) A person that becomes subject to owner liability for some or all of the debts, obligations, or liabilities of any entity as a result of a merger or share exchange shall have owner liability only to the extent provided in the organic law of the entity and only for those debts, obligations, and liabilities that arise after the effective time of the articles of merger or share exchange.
(d) Upon a merger becoming effective, a foreign corporation that is the survivor of the merger shall be deemed to agree that:
(1) Service of process in a proceeding to enforce the rights of shareholders of each domestic corporation that is a party to the merger that exercise appraisal rights may be made in the manner provided in § 29-104.12; and
(2) It will promptly pay the amount, if any, to which such shareholders are entitled under subchapter XI of this chapter.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720.)
Section References
This section is referenced in § 29-306.58.