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The Nell Doctrine states the general rule that the transfer of all the assets of a corporation to another shall not render the latter liable to the liabilities of the transferor. If any of the above-cited exceptions are present, then the transferee corporation shall assume the liabilities of the transferor.
The Nell Doctrine states the general rule that the transfer of all the assets of a corporation to another shall not render the latter liable to the liabilities of the transferor. If any of the above-cited exceptions are present, then the transferee corporation shall assume the liabilities of the transferor.
The Nell Doctrine states the general rule that the transfer of all the assets of a corporation to another shall not render the latter liable to the liabilities of the transferor. If any of the above-cited exceptions are present, then the transferee corporation shall assume the liabilities of the transferor. Legal bases of the Nell Doctrine
The Nell Doctrine states the general rule that the transfer of all the assets of a corporation to another shall not render the latter liable to the liabilities of the transferor. However, should any of the above-cited exceptions be present, then the transferee corporation shall assume the liabilities of the transferor.
In Nell v. Pacific Farms, the Supreme Court first pronounced the rule, referred to as the Nell Doctrine, that the transfer of all the assets of a corporation to another shall not render the transferee liable to the liabilities of the transferor.
THE EDWARD J. NELL COMPANY, petitioner, vs. PACIFIC FARMS, INC., respondent. Agrava & Agrava for petitioner. Araneta, Mendoza & Papa for respondent. CONCEPCION, J.: Appeal by certiorari, taken by Edward J. Nell Co. — hereinafter referred to as appellant — from a decision of the Court of Appeals.
The Supreme Court discusses the Nell Doctrine regarding the transfer of all assets from one corporation to another. Under the Nell Doctrine, the transferee corporation is generally not liable for the debts and liabilities of the transferor corporation, except under four exceptions.
