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Posted On: 08/08/2024 7:33:25 PM
Post# of 85911
A merger between UNVC and TIME is nigh on impossible.
One is a non-profit, one is a for-profit.
The surviving entity would lose its 'non-profit' status, and liabilities of the merged out company would automatically be transferred / assumed by the surviving entity - so they'd lose the non-profit status and assume $30M+ in debts and deferred salaries...
Plenty of other reasons it wouldn't / couldn't happen as well - ownership laws for the existing 'members' of the non-profit, the merger itself would have to approved by the secretary of state, loss of tax exemptions, distribution of existing donations etc etc etc
I'll humor the idea for the sake of discussion...
If TIME was the surviving entity - what would happen to all the UNVC shares and the shareholders rights? Non-profits do not have shareholders, can't legally have shareholders, and the only people who can financially benefit from a non-profit are the 'members', those who oversee and operate the organization.
If UNVC was the surviving entity - it would automatically lose the non-profit / tax exempt status - which is the entire reason TIME exists.
There would be no benefit for either organization.
One is a non-profit, one is a for-profit.
The surviving entity would lose its 'non-profit' status, and liabilities of the merged out company would automatically be transferred / assumed by the surviving entity - so they'd lose the non-profit status and assume $30M+ in debts and deferred salaries...
Plenty of other reasons it wouldn't / couldn't happen as well - ownership laws for the existing 'members' of the non-profit, the merger itself would have to approved by the secretary of state, loss of tax exemptions, distribution of existing donations etc etc etc
I'll humor the idea for the sake of discussion...
If TIME was the surviving entity - what would happen to all the UNVC shares and the shareholders rights? Non-profits do not have shareholders, can't legally have shareholders, and the only people who can financially benefit from a non-profit are the 'members', those who oversee and operate the organization.
If UNVC was the surviving entity - it would automatically lose the non-profit / tax exempt status - which is the entire reason TIME exists.
There would be no benefit for either organization.
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