Church Merger Agreement
4. The specific unit is then described, namely which company will remain, which will dissolve and what will happen to the assets of the dissolving entity. It is also important to ensure that the leaders of the surviving company are made up of people who approve of the new Church. Contact the Secretary of State to obtain the legal (and fictitious) names of both companies. These sometimes change and do not always reflect the name on the panel at the front. An amendment to the articles of association has often been submitted to the Secretary of State and the name is legally changed. Identify the senior executives of each company, usually a president/CEO, a secretary, and a treasurer. State law dictates how this is recorded and recorded, but when officials are no longer in the Church, it is essential to clarify this point before the merger. If the truth is known, most mergers are unsuccessful due to a lack of planning and communication. There are a number of considerations to consider before taking action. Pastoral Care, Inc. has received testimonies in which ecclesiastical mergers have hurt and discouraged many Christians due to misunderstandings or misunderstandings about what actually happened.
Once the preliminary discussions on the intention to merge have taken place, the paperwork begins. The first document you need to design is the Memorandum of Understanding. This is your document “Just so that we are aware of everything”. It will lead you through the merger process and protect both parties from misunderstandings that can detract from your trajectory and jeopardize your reputation. Think of it as the somewhat unpleasant DTR conversation (define the relationship) you have after a few dates. This document does not require a lawyer, but must contain the following sections. If your community is considering merging with another church, a lot of prayer and planning is needed before making any final decisions. We have an excellent structure for your reflection. It is easy to download below. Again, few mergers have been successful.
Those who succeeded gave enough time for planning, prayer, and preparation. Many of the same fundamental business principles that influence decision-making that underpin underlying business-to-business asset purchase contracts are also found in this unique location. In most cases, tax lawyers and lawyers from large churches will encourage the larger church to structure the acquisition as a purchase of property in order to avoid or limit problems related to the assumption of debts of small fighting communities (disclosed, undisclosed and conditional; for example, sexual claims of harassment and abuse of children that have not been declared, a very important concern). 9. A final thought is the resolution. Of course, no one expects the merger to fail, but that does not mean that it is risk-free. With all the prayer, encounters, effort and money involved, proper administration requires a clear strategy when the business collapses. These include what will happen in terms of severance pay, real estate and assets. It is also necessary to define the conditions of sale of the property. .