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
译员黎川,在一家顶尖澳洲律师事务所的上海办公室担任全职法律翻译,专注翻译各种与澳大利亚业务有关的法律文件。
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