| Commentary

217 Types of company reorganisation

| Commentary

(3) COMPANY REORGANISATIONS

A: INTRODUCTION TO COMPANY REORGANISATIONS

217 Types of company reorganisation

There are three main types of transaction which fall within the general heading of company reorganisations. The first two types of transaction are mergers and demergers, both of which involve shareholder restructuring, in the case of mergers, as a means of consolidation of competing or complementary businesses and, in the case of demergers, in order to separate a company’s two or more discrete business activities, by splitting those activities between two or more newly-formed companies.

The third type of transaction is the company reconstruction. Typically, this involves a company transferring

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