Commentary

264.3.3 Conditions applying to indirect demerger

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

264.3.3 Conditions applying to indirect demerger

| Commentary

264.3.3 Conditions applying to indirect demerger

The following conditions set out in Section 1083 apply to an indirect demerger:

  1. (a)

        Condition G: If the demerger involves the transfer of a trade, the distributing company must either not retain any interest, or retain only a minor interest, in that trade.

  2. (b)

        Condition H: If the demerger involves the transfer of shares in a subsidiary, the distributing company must transfer the whole, or substantially the whole, of its holding of the ordinary share capital in that subsidiary and must confer the whole, or substantially the whole, of its voting rights in that

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