+442032868868

Section110liquidationdemergers

Aguidetolegal,taxandpracticalIssues

Version1.0

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 2

TableofContentsPageNo.

• Acknowledgements 3• ImportantNotice 4• Introduction– whoisthisguidefor? 5• Whatisademerger? 6• Whatisasection110demerger? 7• WhywouldIwanttodemergepartofthegroup’sbusiness? 8• Whatarethemainworkstreamswithinasection110demergerproject? 9• Whatarethepotentialshowstoppers? 10• Howdoesitworkandhowlongdoesittake? 11• WhowillIneedtoinvolve? 12• Ademergercasestudy 13• Overviewoflegalfeasibilityissues 21• AboutLCNLegal 22• FreeLCNLegalResources 23• LCNLegalTestimonials 24

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 3

Acknowledgements

This guide has been prepared by LCN Legal with contributions fromPaul Smith of Blick Rothenberg and Ben Woodthorpe of ReSolve from atax and liquidator’s perspective, respectively.

Blick Rothenberg is a market leading accountancy practice providingaudit, assurance and business advisory services as well as providingadvice on corporate and personal tax matters.

ReSolve is an award winning corporate advisory firm combining bothits own capital and experience in advising and funding financiallydistressed businesses, and providing corporate restructuring expertise.

We would like to thank Paul Smith of Blick Rothenberg and BenWoodthorpe of ReSolve for their time and kind contributions to thecontent of this guide.

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 4

Importantnotice

This guide is provided on an “as is” basis. Readers should take theirown professional advice, and this document should not be relied uponas a substitute for the same. No responsibility is accepted by LCN LegalLimited or any other contributors, or any of their respective directors,partners, employees, agents or representatives for any cost, loss orliability, however caused, incurred by any person by reliance on it.

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 5

Introduction

Whoisthisguidefor?

Thisguideisforanyonewhowantstoknowmoreaboutseparatingbusinesseswithinacorporategroupbywayofasection110liquidationdemerger. Ofcourse,therearemanyotherwaystoseparatethebusinessesandassetsofagroup,whetherbydistributioninspecieoftherelevantassets,acourtapprovedreductionofcapital,aschemeofarrangement,across-bordermergeroranintra-groupbusinesssale.However,thesemethodsareoutsidethescopeofthisguideandarefeaturedinotherLCNLegalresourcesavailableonourwebsite. Herewewillfocusontherationale,thekeyconsiderationsandrisks,andthemainstepsrequiredtoimplementatypicalsection110liquidationdemerger.

Thecontentofthisguideisaimedattax,financeandlegalprofessionals(in-houseandinprivatepractice)whomaybeconsideringorbecomeinvolvedinasection110demerger,orwhojustwanttounderstandmoreabouthowtheyworkandwhytheymightbeconsideredausefulmethodofseparatingbusinesses.

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 6

Whatisademerger?

Asacompanyorcorporategroupmayoperateanumberofdifferentbusinessunits,eachutilisingdifferentassets.Foranumberofreasons,itcanbebeneficialtosegregatetheseunitsorassetsbytransferringcertainbusinessesorassetsintoseparateentities. Thetermdemergerusuallydescribestheseparationofassets,initiallyheldundercommonownership,intoseparatecompaniesorgroupsofcompanies.

Asalreadymentioned,thereareanumberofdifferentmethodstodemergebusinessesorassetswithinagroup.Thisguidefocusesonthelegalstepsrequiredandthecommontaxandliquidationissuestoconsiderwhenimplementingasection110liquidationdemerger.

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 7

WhatisaSection110demerger?

Asection110liquidationdemergerinvolvestheliquidationofaholdingcompanyandthetransferofsharesorassetstotwo(ormore)newlyincorporatedcompanies(forthepurposesoftheguide,called“NewCos”).

Theliquidatorexercisesdiscretionundersection110oftheUK’sInsolvencyAct1986toacceptthesharesintheNewCosasconsiderationforthetransferoftherelevantassetsbytheholdingcompanytotheNewCos.Theliquidatorthendistributesthesesharestotheultimateshareholdersinsatisfactionoftheirrightsintheholdingcompany’sliquidation.

ItisalsopossibletosimplifytheprocessbytheNewCosissuingsharesdirectlytotheultimateshareholders.

TheendresultisthattheNewCosarehelddirectlybytheultimateshareholdersasaretheirrespectivedemergedbusinesses.

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 8

WhywouldIwanttodemergepartofthegroup’sbusiness?

Reasonsforwantingtodemergeabusinessorassetswithinagroupvarywidelyandmightincludeanyofthefollowingreasons:

• Toring-fencecertainassetsfromrisksassociatedwithotherassetsorbusinesseswithinthegroup

• Tosetupanewbusinessdivisionwhichwilloperateindependentlyfromtheremainingbusinessofthegroup

• Topackagepartofthegroup’sbusinessforsaletoathirdparty

• Toseparatebusinessesorassetsfollowingadisputebetweenthegroup’sultimateshareholders

• Toformpartofsuccessionorinheritanceplanning

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 9

Whatarethemainworkstreamswithinasection110demergerproject?

Typicalworkstreamsareasfollows:

• Agreementonthevaluationoftheassetstobedemerged(ifthesharesplitwillnotbeidenticalacrossthedemergedcompanies)

• Legalduediligenceofcontractual/regulatory/thirdpartyconsents

• Taxadviceandtaxclearances

• Shareholders’agreementsforthedemergedcompanies(iftheywillhavemorethanoneshareholder)

• Liaisingwiththeproposedliquidatorsandgettingthemcomfortablewiththeplannedtransactions

• Corporatestructuring,legaldocumentationandimplementation

• Post-completionmattersandcompanyfilings

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 10

Whatarethepotentialshowstoppers?

Examplesofpotentialshowstoppersorsourcesofmajordelay/costoverrunareasfollows(alsoseetheOverviewofLegalFeasibilityIssuesonpage21ofthisguide):

• Disagreementonthevaluationofassets

• HMRCquestionsonclearanceapplicationsorconditionsattachingtoapprovals

• Shareholderobjections

• Changeofcontrolissueswithcommercialcounterparties

• Bankingreleasesandregulatoryconsents

• Liabilityissuesinthecompanytobeliquidated(ifthisisnotanewholdingcompany– seeStep1below)

• Changestotheproposedstructureduringimplementationoftheproject,etc.

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 11

Howdoesitworkandhowlongwillittake?

Thetimeneededtocompleteademergerwilldependonanumberoffactors,including:

• whetherthecompaniesorassetsinvolvedinthedemergeraresubjecttomortgagesorotherthirdpartycharges;

• whetherallrequiredadvisorshavebeeninstructedfromtheoutset(includingthelegal,taxaccountingandliquidatorroles);and

• thetypeofassetsandthecomplexityandhistoryofthebusinessbeingtransferred.Forexample,arethirdpartyconsentsrequiredtotransfertheassetsorthebusiness?Willemployeeconsultationberequired?

Inourexperience,thesetypesofprojectsusuallycompletewithin2-6months,however,ifproperduediligenceisnotcarriedoutfromtheoutset,theycantakeinexcessof12monthstocomplete.

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 12

WhowillIneedtoinvolve?

Typicallytheoutlinestructureofthedemergerwillbeputtogetherbythestakeholdersinthebusiness,legaladvisersandtaxadvisers.Amemberoftheprojectteamwillneedtobeappointedtonegotiateanyre-financingarrangementsorthirdpartyconsentsrequiredtocompletethedemerger.

Aliquidatorwillneedtobeappointedandshouldbeconsultedearlyonthestructureandthedetailoftheproposedliquidationdemergersteps. Leavingthistotheendmaydelaytheprojectsignificantly.

WhataretherisksIshouldbeawareof?

Inthedemergercasestudysetoutonpages13to20,wehaveincludedcommentaryonthekeyrisksandissuestobeconsideredbyyourprojectteam,includingfromatax,legalandaliquidatorsperspective.

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 13

ADemergerCaseStudy

BeforeandAfter

Thefollowingpagesillustratethetypicalstepstakeninasection110liquidationdemerger.Thecorporatestructuresoppositeshowthepresentstructureandtheproposedfuturestructurefollowingcompletionofthedemerger.

Inthiscasestudy,themaindriverforthedemergeristoseparateandring-fencetwobusinessescurrentlyoperatedwithinanexistingcompany(TradeCo1),withaviewtoincentivisingthemanagementofeachbusinessseparatelythroughtheintroductionofshareparticipationschemesfollowingcompletionofthedemerger.Thismaybetoincentivisemanagementtogrowtherespectivebusinessesforproposedfuturesale.

AllthecompaniesinvolvedareUKcompanies.

Anythirdpartyconsentsrequiredfortransferringcustomer,supplierorotherthirdpartycontracts,togetherwithsecuredcreditors’consentsorregulatoryapprovalswillneedtobesoughtinadvanceofthedemerger.

TradeCo1

Before After

NewCo1

TradeCo1

NewCo2

TradeCo2

100% 100%

Shareholders Shareholders Shareholders

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 14

ADemergerCaseStudy

Step1– LegalSteps

AnewUKholdingcompany(“NewHoldCo”)isinsertedontopofTradeCo1.Thereasonforthisistohavea‘clean’companyinthestructureinordertoallowtheliquidatortoimplementthedemergerimmediatelyuponcommencementofthemembers’voluntaryliquidationinstep5.Liquidatingtradingcompaniescanprovemorecomplex,timeconsumingandcostly,asaresultofpotentiallackofcorporatememory,hiddenindemnities,warrantiesorotherexposure,andunknownpersonalinjuryclaims,forexample.

ThisstepiscarriedoutbywayofashareforshareexchangeinwhichallcurrentshareholdersofTradeCo1transfertheirsharesinTradeCo1toNewHoldCoinexchangefornewshares(withequivalentrights)inthenewholdingcompany.

NewHoldCoshouldhaveanamenotassociatedwiththatofTradeCo1. Eventhoughtheliquidationisasolvent(i.e.,a‘good’)liquidation,byassociationitmaybringunwelcomeattentionwhenadvertisingtheliquidationifthenamesaretoosimilar.

Taxissues:Technically,theshareholdersdisposeoftheirsharesinTradeCo1and,asconsiderationforthesale,theyreceivesharesinNewHoldCo. UndergeneraltaxprinciplessuchadisposalcouldresultintheshareholdershavingaliabilitytotaxonanycapitalgainthatmightariseonthedisposalwhencalculatedbyreferencetothemarketvalueofTradeCo1,atthetimeofthetransaction. However,inalmostallcases,noactualtaxliabilitywillarise,providedthetransactionisbeingundertakenforbonafidecommercialreasons. AtaxclearanceapplicationistypicallysubmittedtoHMRCinadvanceofthetransactioninordertoobtainHMRC’sconfirmationonthismatter. Thisensuresthatthereisnounexpectedtaxliabilityarisingontheshareholders,asaconsequenceoftheirtransferoftheTradeCo1sharestoNewHoldCo. Inpracticea“combined”clearanceapplicationwillbemadetoaddressthismatterandsimilarissuesarisinginthesubsequentsteps. The“combined”clearancewillincludeaclearanceundersection138TCGA1992andsection701ITA2007toconfirmthatnotaxliabilityarisesontheshareholders,asaconsequenceofStep1.

NewHoldCo

TradeCo1

NewHoldCoisincorporatedandinsertedaboveTradeCo1

100%

Shareholders

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 15

ADemergerCaseStudy

Step2– LegalSteps

AnewUKsubsidiarycompany(“TradeCo2”) isincorporatedasa100%subsidiaryofNewHoldCoandsistercompanytoTradeCo1.Anexistingsubsidiarycouldequallybeusedforthispurposebutmayrequireadditionalrestructuringstepstoreflectthecorporatestructureshownopposite.

ThebusinessorassetstobedemergedarethentransferredtoTradeCo2.IftheassetsaresoldbyTradeCo1toTradeCo2thismaybeatbookvalueifTradeCo1hassufficientdistributablereserves(netrealisedprofits).TheconsiderationforthetransfermightbeleftoutstandingasadebtpayablebyTradeCo2.

Taxissues: ThetransferofthebusinessorassetstobedemergedwillbeadisposalfromTradeCo1toTradeCo2fortaxpurposesandtaxliabilitiescouldpotentiallyarise. However,totheextentthattheassetstransferredarecapitalassets(i.e.,capitalgainsassetsorintangiblefixedassets)thenthe“combined”clearanceapplicationtoHMRC(referredtoatStep1above)willseekconfirmationfromHMRCthatthetransactionisbeingundertakenforbonafidecommercialreasons. IfHMRCagreesthatthisisthecasethenthecapitalassetsaretransferredfortaxpurposesattheirtaxbasecosts(i.e.,nocorporationtaxliabilitywillariseasaconsequenceofthisstep). Unfortunately,therearenoprovisionsthatenablestockintradetobetransferredwithouttriggeringanimmediateliabilitytoUKcorporationtax. However,asthenatureofstockintradeisthatitistobesoldintheshortterm,theninmostcasesthisrepresentsonlyamodestcashflowdisadvantage. Ifland/buildingsareincludedintheassetsbeingtransferredthenstampdutylandtaxcantypicallybeavoidedbyelectingforgrouprelieftoapplytothetransaction. Taxadviceshouldbesoughttoavoidinadvertentlytriggeringataxliability. The“combined”clearancewillincludeaclearanceundersection139TCGA1992toconfirmthatnotaxliabilityarisesontheshareholdersasaconsequenceofStep2.

NewHoldCo

TradeCo1

NewHoldCoasformedinstep1

TradeCo2isincorporatedasa100%subsidiaryofNewHoldco

TradeCo2

100% 100%

Shareholders

TradeCo1sellstherelevantbusiness/assetstoTradeCo2

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 16

ADemergerCaseStudy

Step3– LegalSteps

ThenextstageofthedemergerprocessisusuallytoestablishtwonewcompanieswhichareincorporatedonbehalfofeachoftheshareholdersandareheldbytheshareholdersinthesameproportionsastheoriginalholdingsinTradeCo1.Inourexample,theseareNewCo1andNewCo2. Atthisstage,onlysubscribersharesareissuedbytheNewCostotheshareholdersbecausetheremainingsharesareusedasconsiderationforthetransferoftheTradeCo1andTradeCo2sharesinstep5below.

NewHoldCo

TradeCo2

100%

NewCo1 NewCo2

NewCos1and2areincorporated

TradeCo1

Shareholders

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 17

ADemergerCaseStudy

Step4– LegalSteps

Theshareholderspassaspecialresolutiontocommencethemembers’voluntaryliquidation(“MVL”)ofNewHoldCoandaliquidatorisappointed.

IftheMVLiscommenced,theliquidatoreffectivelyholdstwoassets– i.e.,thetwowhollyownedsubsidiariesofNewHoldCo,beingTradeCo1andTradeCo2.

TheplacingintoliquidationofNewHoldCoandtheappointmentofaliquidatordoesnotinitselftriggeranytaxcharge.

NewHoldCo

TradeCo2

100%

NewCo1 NewCo2

TradeCo1

Shareholders

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 18

ADemergerCaseStudy

Step5– LegalSteps

A demergeragreementisenteredintobetweentheliquidator,theshareholders,NewCo1andNewCo2.ThisagreementprovidesfortheliquidatortodistributethesharesofTradeCo1toNewCo1andthesharesofTradeCo2toNewCo2.Inconsideration,NewCo1andNewCo2issuenewsharestotheshareholders.

Taxissues: Providedthetransactionisbeingundertakenforbonafidecommercialreasons,thennocorporationtaxliabilityshouldbetriggeredinNewHoldCo,whenitssharesinTradeCo1andTradeCo2aredistributedbytheliquidatortoNewCo1andNewco2,respectively.ThosesharesaretreatedfortaxpurposesasiftheyhadbeendisposedofbyNewHoldCo,andasacquiredbyNewCo1andNewCo2,respectively,attheirtaxbasecosts. The“combined”clearancewillincludeaclearanceundersection139TCGA1992toconfirmthatnotaxliabilityarisesonNewHoldCo,asaconsequenceofitsdisposalofsharesinTradeCo1andTradeCo2bytheliquidator.

NewHoldCo

TradeCo2

100%

NewCo1 NewCo2

TradeCo1

NewHoldCo/LiquidatortransfersthesharesinTradeCo1toNewCo1

Shareholders

NewHoldCo/LiquidatortransfersthesharesinTradeCo2toNewCo2

NewCo1issuesnewsharestotherelevantShareholders

NewCo2issuesnewsharestotherelevantShareholders

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 19

Step5– Taxissues(continued):

Thereshouldalsobenotaxliabilityfortheshareholders,asreconstructionreliefshouldbeavailable.Theshareholders’taxbasecostsintheirsharesofNewCo1andNewCo2shouldbeequaltotheirtaxbasecostinNewHoldCo(whichwasequaltotheirtaxbasecostinthesharesofTradeCo1beforethereorganisation).ThisputstheshareholdersinthesametaxpositionastheywerebeforethereorganisationwiththeirtaxbasecostnowsplitbetweenthetwoNewCos. The“combined”clearancewillincludeaclearanceundersection136TCGA1992toconfirmthatnotaxliabilityarisesontheshareholdersasaconsequenceofthisstep.

AlthoughTradeCo2leavesthegroupwithinsixyearsofanintra-grouptransferofassetstoit,nocapitalgainsde-groupingchargearisesbecausethateventisasaconsequenceofamemberofthegroupceasingtoexist(section179(1)TCGA1992andsection788(1)CTA2009).Aclawbackofgroupreliefforstampdutylandtaxshouldalsonotbetriggeredbecausethede-groupingisaconsequenceofa“windingupofthevendororanothercompanythatisabovethevendorinthegroupstructure”(Para4(4)Schedule7FA2003).

ThetransactionisalsolikelytoqualifyforreconstructionrelieffromstampdutyforthetransferofthesharesofTradeCo1andTradeCo2providedthereorganisationisnotpartofanarrangementtotransfertheultimateownershiptooneormoreidentifiedthirdparties(Sections77&77AFA1986)

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 20

ADemergerCaseStudy

Post-LiquidationStructure

Asaresultoftheconclusionofstep5,TradeCos1and2willhavebeensplitintotwosegregatedbusinessesbothofwhichcanfunctionindependentlyandeachofwhichareheldbydifferentshareholders.Forthepurposesofourcasestudy,eachofTradeCo1andTradeCo2cansubsequentlyissueemployeeparticipationsharestotheirrespectivemanagementteamsasameansofincentivisingtheteamstogrowtherespectivebusinesswithaviewtoapotentialfuturesaleofoneorbothofthedemergedbusiness.

TheliquidatorwillthenproceedtofinalisetheliquidationofNewHoldCo.Asthereisnotradinghistoryattachingtothiscompany,taxclearancewillnotlikelyberequiredandtheliquidatorwillseektoholdafinalmeetingoftheshareholderspriortomovingittodissolutionasquicklyaspossible.

RelationshipbetweenTradeCo1andTradeCo2

Ifrequired,aservicesagreementmaybeputinplacebetweenTradeCo1andTradeCo2togoverntheprovisionofservices(ifany)fromonetotheother.

Taxissues: Theshareholdersareinthesamepositionastheywerepriortothedemerger. Inparticular,theyarestilltaxedondividendsandgainsinexactlythesamewayastheywerebeforethereorganisationexceptthattheynowhavetwoinvestmentsinsteadofone.

NewCo1

TradeCo1

NewCo2

TradeCo2

ShareholdersShareholders

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 21

Overviewoflegalfeasibilityissues

1.DissentingshareholdersAlthoughitispossibletoimplementademergerwithdissentingshareholdersinthecurrentholdingcompany,itisgenerallymorecomplicatedandcostly. Additionalproceduresmaybeneeded,suchasacourt-approvedschemeofarrangement.

2.DistributablereservesinthecurrentholdingcompanyAswehaveseen,atypicalsection110demergerinvolvesinsertinganewcompanyontopoftheexistingholdingcompany,bymeansofashare-for-shareexchange.Theexistingholdingcompanywouldthenhiveupassetsorsharestothenewholdingcompanybywayofadistributioninkind. Theexistingholdingcompanymusthavesufficientdistributablereservestodothis. Itwouldalsoneedtohaveauthorityinitsarticlesofassociationtomakeadistributioninkind.Eachofthesepointsshouldbecheckedwellinadvanceofimplementationofthedemerger.

3.IndemnitiesinfavourofliquidatorsUsually,thedemergerhappenssoonaftertheliquidationofthenewholdingcompanyiscommenced.Thismeansthattheliquidatorwillnothavecompletedtheusualprocessofadvertisingforcreditors.Theliquidatorswillthereforetypicallyrequireindemnitiesfromtheultimateshareholdersagainstclaimsmadebyanycreditors.Inpractice,thisisnotusuallyanissuebecause,bydefinition,newholdingcompanyhasnotpreviouslytraded.Sometimestheindemnitymightincludethirdpartiesandagreementonthetermsofallindemnitieswouldbesoughtpriortotheliquidator’sacceptanceoftheappointment.

4.ConsentsfromthirdpartiesTheconsentofbanksorotherthirdpartylendersmayberequiredinordertoimplementthedemergerandshouldbeconsideredwellinadvance.Ifatradeorassetistobetransferredaspartoftheproject,thenthirdpartyconsentsmayalsoberequired.Foranoverviewoftypicalconsents,seethefollowingarticleontheLCNLegalwebsite:Legalfeasibilitychecklist:IntragrouptransferofUKtradeandassets

5.ChangeofcontrolissuesonatransferofsharesWheresharesarebeingtransferredaspartoftheproject,theremaybechangeofcontrolissuestoconsider,eveniftheultimateownershipofthecompaniesconcernedisnotchanging. Forexample,asubsidiarycompanymaybeapartytoajointventure.Thesharesinthatsubsidiarymaybetransferredbytheexistingholdingcompanytoanewholdingcompanyaspartofthedemerger.Thatchangeinshareholdingmaytriggerchangeofcontrolprovisionsinthejointventuredocumentation.

6.LargenumbersofshareholdersIfthereisalargenumberofshareholdersintheexistingholdingcompany,considerwhetherthedemergerwillinvolvean“offerofsecuritiestothepublic”forthepurposesoftheFinancialServicesandMarketsAct2000.Typically,theviewistakenthatitshouldnot,butthatwilldependonthespecificcircumstancesinvolved.Inpractice,ifalargenumberofshareholdersisinvolved,thenitalsobecomesimportanttoanticipatethepossibilityofshareholderdissentandtoputinplacecontingencyplans.

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 22

AboutLCNLegal

LCNLegalisaboutiquelawfirm,establishedin2013andregulatedbytheSolicitorsRegulationAuthorityinEngland&Wales.Inadditiontoitsfocusonfundsandpropertyinvestmentstructures,LCNLegalalsoadviseslargecorporatesandChineseandotheroverseasinvestorsondomesticandinternationalcorporateandinvestmentstructures.

One of our co-founders, Paul Sutton, was previously a corporatepartner in the London office of Pinsent Masons, and before that aDirector in KPMG’s law firm in London. Our other co-founder, XiaofangSutton, studied law in Beijing and Edinburgh. She then helped theLondon Chamber of Commerce and Industry to establish its ChineseBusiness Association. During that time, Xiaofang worked with manyChinese state-owned and family-owned businesses.

OurseniorlawyershavetrainedandworkedatinternationallawfirmssuchasLinklatersandBaker&McKenzie.Collectively,ourteamhasover50years’experienceofthelegalimplementationofgroupreorganisationsandinternationalcorporateinvestmentstructures.

We have acted on the legal implementation of groupreorganisations for household name clients in a range of sectorsincluding telecoms, electronics, retail, financial services, IT,consulting and outsourcing. This has involved projects includingcorporate migrations, cross-border mergers, share and asset salesand acquisitions, business sales, corporate streamlining, transferpricing compliance, eurobond listings, removing of dividend blocksand the unwinding of tax planning which is no longer appropriate.

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 23

FreeLCNLegalResources

Weregularlypublisharticlesandguidesforfinance,legalandtaxprofessionals. Emailusatinfo@lcnlegal.com orcalluson+442032868868toorderyourfreecopiesorvisitourwebsite(http://lcnlegal.com)foraccess,includingtothefollowingarticlesandguides:

• Legalfeasibilitychecklist:IntragrouptransferofUKtradeandassets

• FreeGuide:GroupReorganisationPlanningForm

• HowtoimplementaCross-borderMergerinagroupreorganisation

Pleasealsofeelfreetosignupforfreeonourwebsitetosubscribeforotherfreematerialsandalertstoupcomingtrainingeventsanddiscussiongroupsoncorporatereorganisationsandothertopics.Tosubscribe,emailusatinfo@lcnlegal.com orcalluson+442032868868.

+442032868868

Legalimplementationofcorporatestructures ©LCNLegalLimited2017www.lcnlegal.com 24

LCNLegalTestimonialsInadditiontoourfreelegalresources,wealsooffertrainingseminarsandhostdiscussiongroupsforcorporate,financialservicesandprivateclientsonavarietyoftopicsrelatedtocorporaterestructuring,mergersandacquisitions,andinternationalinvestmentstructures.BelowareafewofthetestimonialsforLCNLegaltrainingevents:

• “Anexcellentevent.ThemostinsightfultwohoursI’vespentinalongtime.”– Director,PropertyDevelopmentGroup

• “Veryenjoyableandinformativesession!”– HeadofInternalAudit,FTSE100propertygroup

• “Ifounditrefreshingtogothroughthetechnicalchallengesandbestpracticeonunwindingentities,includingprojectmanaging theprocess,withsomehighlyskilledandexperiencedin-housetaxandlegalexperts.”– HeadofTax,FTSE100group

• “ThatwastheclearestexplanationofAvelingBarfordI’veheardforalongtime!”– DirectorofGroupLegal,FTSE250insurancegroup

• “Wonderfultoattendandshareexperiences.”– InternationalTaxManager,FTSElistedhouseholdnameaviationgroup

• “Excellentcoverageofacomplextopic.”– Partner,TaxAdvisoryPractice

• “Thiswasathought-provokingseminarwithgreatandrelevantdiscussion.”– Founder,TaxAdvisoryPractice

• ”Aninsightfulseminarshowcasingexperiencesthatarenototherwiseobtained.TheLCNteamledtheseminarsuperblyandIlearnt muchtoday.”– Director,CorporateRecoveryFirm