Commentary

262 Issue or transfer of shares constituting a qualifying distribution

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

262 Issue or transfer of shares constituting a qualifying distribution

| Commentary

2: ISSUES ARISING FOR SHAREHOLDERS

(a) Deemed distributions under the Corporation Tax Act 2010

262 Issue or transfer of shares constituting a qualifying distribution

Whether a company reorganisation constitutes a reconstruction, merger, demerger or division, it can involve one company (Company A) transferring some or all of its undertaking or shares in a subsidiary company to another company (Company B) in return for Company B issuing shares to all or some of Company A’s shareholders. The main exception to this is in the case of a direct demerger where Company A makes a distribution in specie of its shares in one of

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