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Demerger of group

Demerger of group

I have a client limited company which is a property investment company. This company owns 90% of the shares in a trading company. I need to split up the group so that individual shareholders of the property investment company will,after the demerger, own 100% of the property investment company and 90% of the trading company. I think the only way to do it is via a s110 liquidation.

Anyone know of other ways this could be acheived.

Thanks in advance. 


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02nd Mar 2012 15:25


A s110 reconstruction is almost certainly the only way to do it unless the figures are so small to justify a direct distribution of the shares to the shareholders.

Such a demerger is fiddly but not overly so. Unless the numbers are huge or there are complicating features, it will probably cost in the region of £15,000 + VAT. Anything massively more than this and you are probably being ripped off!

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By mdsergi
02nd Mar 2012 16:24

Thanks for your comment. Looks like it will be a s110 reconstruction.

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