recharacterization

recharacterization. A court’s determination that an insider’s loan to an entity in liquidation (such as a corporation or partnership) should be treated as a capital contribution, not as a loan, thereby entitling the insider to only part of the liquidation proceeds payable after all the business’s debts have been discharged. • Factors influencing this determination include the amount of capital initially available, the ability of the entity to obtain loans from outside sources, how long the entity has existed, the treatment of the loan in the entity’s business records, and past treatment of similar transactions made to that entity by an insider.
专业法律词汇 词条贡献者
双语律师蓉婧,国内知名法学院民商法专业,擅长翻译各类与数据隐私及安全相关的法律文件。
Scroll to Top