ARTICLE · 06 AUGUST 2018

Demerger

Walkers

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The principle of a demerger regime is to enable a company to divide its assets and liabilities between two or more companies and for the transfer of such assets and liabilities to be by operation of law.

JerseyCorporate/Commercial Law

Jonathan Heaney

Alexandra Corner

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Demerger provisions were anticipated in the Companies (Jersey) Law 1991 (as amended) and now the Companies (Demerger)

(Jersey) Regulations 2018 (the "Regulations") are coming into force on 1 September 2018.

What is a Demerger

The principle of a demerger regime is to enable a company to divide its assets and liabilities between two or more companies and for the transfer of such assets and liabilities to be by operation of law.

A split up demerger means that the original entity may cease to exist and there would be two or more new entities continuing the business. A spin off demerger means that the original entity continues with one or more new entities set up. Both options are available in Jersey.

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