General Counsel Adding Value By Corporate Simplification

"The ability to simplify means to eliminate the unnecessary so that the necessary may speak"
(Hans Hoffman)

Simplifying a group structure through closing corporate vehicles can have significant benefits to the balance sheet and the business. It may also help with your work load. This article sets out why corporates should consider simplifying, how they may do so and some of the considerations to bear in mind.

Why simplify?

Key motivations for corporate simplification include:

• Remove the "dead wood" from the group
• • A company may no longer be required as it may have achieved its purpose;
  • There may be duplicate companies which are carrying out the same function as another company within the group;