This Guide has been prepared as a practical introduction to the legal, tax and practical issues involved in a liquidation demerger project under section 110 of the Insolvency Act 1986. It includes an overview of the following frequently asked questions and topics:
- What is a demerger?
- What is a section 110 liquidation demerger?
- Why would I want to demerge part of the group’s business?
- What are the main workstreams within a section 110 demerger project?
- What are the potential showstoppers?
- How does it work and how long does it take?
- Who will I need to involve?
- A step by step demerger case study, including legal, tax and liquidators’ perspectives
- An overview of legal feasibility issues in any demerger project