Mere-Continuation Doctrine Law and Legal Definition

Mere continuation doctrine is a legal principle, under which a successor corporation is held liable for the acts of a predecessor corporation. This happens when only one corporation remains after the transfer of assets and the two entities have "significant shared features" such as the same equity ownership, same employees, the same service or product being produced, same supervision, directors and the like. The touchstone of the 'mere continuation' doctrine is whether the successor corporation as a whole is 'substantially the same' as its predecessor.

Mere continuation doctrine is also known as continuity-of-entity doctrine.