There are many reasons why a restructuring of a corporate group is required. Often it is driven by tax issues or to minimise risk. For example it may be appropriate to transfer part of the business into a separate legal entity to enable it to be sold; alternatively, where there is disagreement between the members, it can be sensible to divide the company's business between two or more sets of shareholders.
It can also help to protect the company's assets from risk by setting up a holding company to own the main assets and lease them to the more risky trading entity, thus helping to preserve the assets of value even if the trade fails.
When considering any corporate restructuring it is important to look carefully at the tax implications arising from the proposals. Combining our expertise in tax, corporate and insolvency law we are able to work closely with clients and their advisers to ensure that the appropriate scheme of reconstruction is chosen and that any required clearance is obtained.