Legal analysis: 1. The board of directors shall formulate a division plan and report it to the shareholders' meeting for resolution. The company's division plan shall be formulated by the board of directors and submitted to the shareholders' meeting for discussion and decision; The resolution on division made by the shareholders' general meeting must be passed by more than two thirds of the voting rights held by the shareholders present at the meeting. 2. The divided parties, that is, the shareholders of the original company, shall conclude an agreement on the specific matters of division. 3. Go through the relevant examination and approval procedures according to law. The division of a joint stock limited company must be approved by the department authorized by the State Council or the provincial people's government. 4. Handle various separation matters such as creditor's rights and debts. 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. 5. Go through the formalities of change registration according to law. Where the registered items of a company existing due to division change, it shall apply for registration of change; A company dissolved due to division shall apply for cancellation of registration; A company newly established due to division shall apply for registration of establishment. The company shall apply for registration within 45 days after making a resolution or decision on separation.
Legal basis: People's Republic of China (PRC) Company Law.
Article 175 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.
Article 176 The debts of the company before division shall be jointly and severally liable by the company after division. However, unless the company and creditors reach a written agreement on debt settlement before division.