In a Sec 332 Liquidation, Can a Subsidiary Corporation Recognize Losses on Losses

question 57

Essay

In a Sec. 332 liquidation, can a subsidiary corporation recognize losses on distributions to either the parent corporation or minority shareholders?

---

Definitions:

Standing to Sue

The legal right to initiate a lawsuit, based on having sufficient connection to and harm from the law or action challenged.

Substandard Quality

A term indicating that a product or service does not meet the expected level of quality set by industry or regulatory standards.

Venue

The geographical district in which an action is tried and from which the jury is selected.

Minimum Contacts

A legal principle that determines the ability of a court to exercise jurisdiction over an out-of-state defendant, based on the defendant's certain activities within the state.