Companies change. So do their structures.
Corporate Restructuring
Changing corporate structures means creating the legal framework for a company’s future development.
A corporate restructuring starts with the objective, not the legal instrument.
The starting point is the structure to be achieved for the company and its shareholders. This objective determines the appropriate corporate law framework and the steps required to put it in place.
Corporate restructurings regularly involve different legal and economic considerations. Careful coordination of the individual steps is therefore essential to ensure that the new structure is established with legal precision.
Reshaping corporate structures creates the legal framework for a company’s future development.
A restructuring may be prompted by changes in the shareholder structure, succession planning or a change in strategic direction. Business divisions may also be reorganised, ownership arrangements adjusted or responsibilities reallocated.
The legal structure should therefore not be determined solely by the immediate trigger for the restructuring. What matters is which structures best support the company’s future development.
The business objective must be translated into a workable legal structure.
A range of legal instruments is available for corporate restructurings. These extend from adjustments to existing structures and shareholdings to more comprehensive reorganisations involving the combination, separation or transfer of companies or parts of companies.
What matters is how the individual steps interact. The corporate law measures, the necessary resolutions and agreements, and the required filings with the relevant registers must be carefully coordinated so that the intended structure is implemented with legal precision.
Tax requirements must be taken into account at an early stage. Where necessary, the corporate law aspects of the restructuring are closely coordinated with tax advisers and the other parties involved.
Corporate restructuring experience
Complex corporate restructurings have been a focus of David Fabry’s practice for many years. His experience extends from developing the underlying structure to implementing the individual corporate law measures.