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What to do with your domain in case of the company's reorganisation or liquidation?

Division (distribution, division, spin-off) or liquidation of business is not a rare phenomenon in practice. It is noticed that in such cases the valuable assets – advertised domain name, created and developed websites or e-shops related to a certain domain – sometimes can be forgotten. In case of the division of legal entity it may cause disputes in time, because the transferee of rights is not clear in terms of domain. In case of the liquidation of legal entity it leads to the deletion of domain, because the domain owned by a non-existing entity cannot exist.

Therefore:

  1. When planning division of your business, include reorganisation provisions stating which specific legal entity remains functioning after reorganisation and acquires the right to domain, as well as related websites or e-shops (application software, databases, etc.) and email. These assets have to be indicated in the division balance sheet and included in the transfer-acceptance act completing the reorganisation.

  2. If you want to delete the domain after liquidation of legal entity, perform the trade procedure before this decision (as explained here). This should not violate the interests of the legal entity’s creditors, if any.

In case of business combination (incorporation, combination), it is also recommended to solve the issue of the right to domain and related assets in the reorganisation provisions. Even though in case of business combination all rights and obligations are transferred to a specific (other or new) legal entity, it should be noted that in case these assets are not mentioned in the reorganisation provisions, they are managed poorly for a certain period of time after reorganisation.