Chris Holmes and Ben Handley (BDO) provide a guide to a relatively quick and simple method of separating a company’s activities.
Purpose and use of the statutory demerger provisions
In our experience statutory demergers have historically not been very common for privately owned businesses. This is because many demergers in this market are carried out in contemplation of a sale or to segregate businesses which are not trading. A statutory demerger cannot be used in these circumstances.
However where the right fact pattern exists a statutory demerger will likely be the simplest and least expensive route to segregate trading activities. In the current environment where many owners are rethinking their businesses and operational structures a refresher on these provisions is worthwhile.
Demergers are generally used as a means of separating the activities of a company or group where there are commercial reasons for doing...
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Chris Holmes and Ben Handley (BDO) provide a guide to a relatively quick and simple method of separating a company’s activities.
Purpose and use of the statutory demerger provisions
In our experience statutory demergers have historically not been very common for privately owned businesses. This is because many demergers in this market are carried out in contemplation of a sale or to segregate businesses which are not trading. A statutory demerger cannot be used in these circumstances.
However where the right fact pattern exists a statutory demerger will likely be the simplest and least expensive route to segregate trading activities. In the current environment where many owners are rethinking their businesses and operational structures a refresher on these provisions is worthwhile.
Demergers are generally used as a means of separating the activities of a company or group where there are commercial reasons for doing...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
