An overview of the rationale for implementing a demerger and the different structures that may be used to achieve a demerger. The structures considered in this note are direct dividend, three-cornered demerger, three-cornered reduction of capital, scheme of arrangement and a section 110 scheme. This note also addresses some of the practical issues that must be considered before implementing a demerger.
A note on the new employment status of employee shareholder (originally called employee owner) that came into force on 1 September 2013. We have published this document in draft as there are numerous areas of uncertainty with the new law. We would welcome comments and suggestions from subscribers. Please go to the Ask page to provide feedback.
This practice note explains when a stock transfer form is required, and provides details on how to complete the form. For a stock transfer form that can be edited and saved to your desktop, please see Standard document, Stock transfer form.