Corporate Reorganization Lawyer Surrey BC
We can help you maximize efficiency with proper corporate reorganization and restructuring of your company.
Patrola Law is chosen as a top business law firm in 2018 by Three Best Rated and trusted by clients with a 4.9 star rating on Google.
What is Corporate Reorganization?
Corporate reorganization and restructuring refers to the act of reorganizing the legal, ownership, operational, or other structures of a company.
The reasons to reorganize a company may vary, which can include:
- Adding a holding company or family trust
- Eliminating one or more corporations or trusts in the corporate group
- Changing the share structure or ownership of one or more companies
- Performing an estate freeze
- And a variety of other possibilities.
Skip the reading and schedule a free consultation with our business lawyer today.
Types of Company Reorganizations
There are numerous ways companies reorganize and restructure. The reorganization of a company typically addresses the efficiency component in an attempt to increase profits.
Corporate reorganization normally occurs following buyouts, takeovers, other forms of new ownership or the threat or filing of bankruptcy.
Some common types of corporate reorganization include transfer, recapitalization, and identity change.
Transfers typically involves bankruptcy by permitting the transfer of all or some of a failing company's assets to a new corporation. In this case, the stock and securities of the controlled corporation are distributed to the previous company's shareholders.
Another type of transfer is classified as acquisitive reorganizations or divisive restructurings, which include spinoffs and split-offs.
For instance, if Corporation A contains the assets of former Corporation B and of Corporation A, Corporation B goes out of business, and former Corporation B shareholders control Corporation A.
A recapitalization transaction usually involves the exchange of stocks and securities. It involves only one company and aims to restructure the company’s capital.
An identity change can be achieved by simply changing identity, form or place of the organization.
These changes may include:
- Name change
- Change of the province where the company operates
- Changes in the company’s charter
In such a case, a transfer is to occur from the prior corporation to the new company.
Potential benefits of doing a corporate reorganization include:
- Simplifying the corporate structure and thereby reduce annual accounting and legal costs
- Reduce the overall tax burden in the corporate and family group
- Allow for the application of business losses from one corporation to another.
Patrola Law can Restructure Your Company for Maximum Efficiency
Patrola Law Corporation is focused on delivering restructuring and business transformation solutions.
We provide expertise in corporate reorganization, tax restructuring, capital market advisory as well as financial management and performance improvement solutions.
Our Surrey BC team of business law professionals are committed to our client’s success and address the full spectrum of financial, operational and transactional risks and opportunities.
Have us solidify your corporate structures.
Legal assistance is one click away.