RECHARACTERIZATION

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.
How would a bilingual lawyer translate the term RECHARACTERIZATION into Chinese?
TermBase About LegalLingo
LegalLingo, a Shanghai-based translation agency, is a recognized leader in comprehensive legal language solutions for the legal industry. We provide the world’s leading law firms and corporate legal teams with a full suite of services, ranging from the translation of contracts and compliance documentation to full-scale multilingual litigation requiring certified translation and Chinese document review. We deliver customized legal document translation solutions based on your case’s size and budget requirements, utilizing industry-leading technology to ensure accuracy, lower costs and faster turnaround times.