Joint stock companies can be divided into limited companies. The division of a joint stock limited company refers to the division of a joint stock limited company into two or more companies due to the needs of production and operation or other reasons. The division of a joint stock limited company can be divided into two forms: newly established division and derivative division. The newly established division means that a joint stock limited company divides all its property into two or more and establishes two or more new companies. The legal person status of the original company disappeared. Derivative separation refers to the separation of part of the property by a joint stock limited company and the establishment of one or more new companies, and the original company continues to exist.
legal ground
Article 175 of the Company Law stipulates that when a company is divided, its property shall be divided accordingly. When the company is divided, it shall prepare a balance sheet and a list of assets. The company shall notify the creditors within 10 days from the date of making the resolution of separation, and make an announcement in the newspaper within 30 days.