| Commentary

221 Indirect demergers

| Commentary

221 Indirect demergers

A direct demerger may not be appropriate in all circumstances. For instance, if in the example discussed in Paragraph 220 [764] above, Multico had owned the two discrete businesses directly and not through the two subsidiaries, a distribution in specie would not be possible. This would also be the case in other situations where the original company wishes to split off the assets of a business rather than the shares in a company. Alternatively, Carol and Tim may wish to interpose a new holding company between themselves and the demerged company. There may also be tax disadvantages

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial