Three forms of company division:
1. Survival and division: refers to the division of a company into more than two companies, and the company continues to exist and establishes more than one new company;
2. Dissolution and division: refers to the division of a company into two or more companies, and the dissolution of the company and the establishment of two or more new companies;
3. Where the company exists by division, the company will continue to exist but reduce its registered capital. The proportion of shares of the original shareholders in the company and the new company can remain unchanged.
Second, analysis
The division of a company is a major issue stipulated in the Company Law and should be decided by the shareholders' meeting in the form of a special meeting resolution. When the shareholders' meeting decides to adopt this plan, it is especially necessary to adopt the company debt sharing agreement, that is, the agreement that two or more companies will share the debts of the original company in the future.
3. What is the reason for the split of the company?
The reasons for the division of the company mainly include the following aspects:
1 to improve management efficiency;
2. Highlight the main business;
3. Solve internal disputes;
4. Reasonable tax avoidance;
5. Management incentives;
6. Anti-hostile takeover.