Corporate reorganisations require analysis of company law issues as well as tax considerations. Paul Lester outlines the legal traps to avoid
There is always a critical piece in the planning for a group reorganisation which needs to be addressed in parallel with the tax considerations and that is company law.
Spending time and effort designing a tax-efficient restructuring plan will prove fruitless if it simply cannot be implemented because of company law restrictions.
What are the most common legal pitfalls encountered in corporate reorganisations?
On transactions between companies in the same group the effect of the transaction on each company must be reviewed separately.
Company law does not recognise any concept of group...
