As a legal act, the successful division of a company will inevitably lead to a series of legal consequences, mainly including:
1, change of company entity, involving dissolution, change and establishment of the company.
In the newly established separation form, the original company is dissolved and the new company is established. In the form of derivative division, the original company exists, but due to the changes of shareholders and registered capital, it is necessary to change the main body and set up a new company.
2. Changes in shareholder status and shareholding.
Because the company is "divided into two" or "divided into many", the identity of shareholders may also change, that is, the shareholders of the original company have become shareholders of the new company. As far as the shareholders who stay in the original company are concerned, although the status of shareholders has not changed, the shareholding ratio in the original company may change. Because the division of the company will generally lead to the reduction of the original company, with the reduction of the registered capital of shareholders and the company, the shares of the remaining shareholders in the company will inevitably increase.
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.