cases when division of a company or transfer of a part of a business (an undertaking) is necessary, a number of ways how to implement the division – by dividing a company (by spinning off or splitting) or by establishing a new company and investing in its share capital or alienating (selling) a part of a business (an undertaking) to that company, and the processes for implementation thereof, comparison of these ways of division from the perspective of taxes, process length, costs, necessity to inform creditors and the State Revenue Service and challenge of transaction validity, cases when creditors have rights to bring claims against any party involved in the transaction.
Andra Rubene On 21 November 2013, in the newspaper “Dienas Bizness”, section “Saldo”, article “Division – an opportunity to introduce order in a company” Andra Rubene, Partner and Head of M&A Practice Group in Latvia, from law office TGS Baltic, informs about: