Demerging

How to split a company into two

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A company owned 50/50 by two individuals owns residenatial property. It rents out thhe properties. It wishes to split into two companies A and B each. One of the existing shareholders will own 100% of A dn one 100% of B .the assets and liabilites distributed equally. Company A could be the original company and B would be a newco. How can this be done efficiently.

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By johngroganjga
17th Mar 2017 07:50

What are the liabilities? That is where the difficulty arises. It is one thing to distribute assets, but distributing liabilities is another matter - at least without the creditor's agreement, for obvious reasons.

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By MBK
17th Mar 2017 12:53

Being a non trading company this will probably have to happen via a S110 liquidation demerger. An area for specialist advice. Do NOT try and do it yourself!

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