Demerger
Demerger Of Company
Introduction of Demerger
A demerger also known as a spin-off, is a restructuring mechanism where a corporate entity is split into separate parts which become new legal entities. The legal entities form their own separate identity with their distinct assets, liabilities, and functions.
In a demerger, the parent corporation transfers ownership of the subsidiary or business unit to its current shareholders, essentially separating the two into separate legal organisations. These recently established organisations function as autonomous businesses, frequently with their management groups and boards of directors.
Nexjuris is one of the top law firms for demerger advisory. We have a splendid track record of providing services like amalgamation and demerger both in the domestic market as well as internationally. We have exemplary associates who are well versed with the recent regulations in demerger law and hence we provide innovative solutions to your problems. We help in focusing on your core operations by spinning off the subsidiaries and unlocking the potential of your organisation. We ensure that all compliances and regulatory requirements are followed so that the demerger can take place without any issues.
Legal Framework for Demerger
The Companies Act 2013 provides the legal framework for demergers. The provisions deal with the powers and functions of the National Company Law Tribunal to sanction schemes of arrangement or compromise. It also outlines the factors that have to be taken into consideration for a demerger.
Nexjuris is one of the finest law firms which helps with the demergers of a company. We provide services like providing the legal framework for demerger schemes, including the transfer of assets, liabilities, and other stakeholders to the newly created entity. We also provide schemes for the formation and administration of the newly formed body corporate.
We ensure that the books and papers of the demerged company are preserved so that a continuous record is kept of the records and documents. We also address the liability of the offenses committed before the demerger. We help clarify the extent of liability and responsibility for the offenses committed.
We also coordinate the entire process with Serious Fraud Investigation Office (SFIO) in conducting an investigation of any offense committed during the demerger process.
We ensure that all compliances are in place and your newly formed company is ready to function.
Our Approach to Demerger
Nexjuris focuses on efficiency and integrity as our core values which makes it one of the best legal firms for the demerger of companies.
- With value creation as our sole intention, we help demerging companies get a clearer understanding of the potential of demerged assets which leads to greater profit.
- We help create an environment of transparency between the client and its newly separated entities attracting more investors and enhancing shareholder value.
- We ensure there is sufficient risk mitigation and any dispute arising out of a demerger is contained within its specific units and does not affect the entire organisation.
- We ensure there is improved governance and accountability by placing management at each entity separate from its parent organisation.
- We also take care of the rigorous compliances which are needed at the time of a demerger.
- We help streamline the organisational structures, reporting systems, and financial statements preventing a concentration of power and clarity to stakeholders.
Experienced Team
Nexjuris stands among India’s leading corporate law firms, driven by the strength of its exceptional team.
We firmly believe that a firm is only as strong as its people, and this belief guides us to continuously build a team of top-tier corporate lawyers based at our headquarters and across India. Our practice is further supported by strategic collaborations with leading legal professionals globally, enabling us to manage and deliver even the most complex transactions with precision. It is our unwavering commitment to the highest standards of professional ethics and client service that has earned Nexjuris its reputation as a trusted name in the corporate legal landscape.
Industry Experience
While Nexjuris has successfully served clients across India and internationally, our roots and headquarters remain firmly established in New Delhi.
This strong foothold in the capital has enabled our team to play an instrumental role in advising government bodies on key legal and policy matters. Nexjuris is among the select few corporate law firms in India with deep expertise in legislative interpretation and policy drafting — a distinction that underscores our ability to navigate complex regulatory frameworks and contribute meaningfully to shaping legal reform.
Client-Centric Approach
Nexjuris adopts an approach that demands the highest levels of knowledge, technical skill and service delivery allowing us to provide accurate, reliable, timely, and cost-effective advice while maintaining international standards of excellence and create a bespoke approach for every client and their business. Our commercial law solicitors unique perspective of working on our client’s matters as a critical part of their team allows us to address their problems like our own. We believe that each client comes with different requirements and concerns – and we work tirelessly to achieve their goals and pursue their objectives.
Cost-Efficient
We make sure that our fee structure and the legal costs involved are very transparent and predictable for our clients. We believe that client relationships are based on trust and a sense of common purpose and we never falter on our promise making us one of the best corporate law firms in India. Our priority has been to deliver the best legal & business solutions and our fee arrangements are tailored to the needs of the client, the client’s goals, and the nature of the matter.
Frequently Asked Questions
1. What does corporate commercial law mean?
Corporate and commercial legal practice includes a wide range of legal issues when it comes to drafting commercial contracts and agreements. It broadly entails all corporate legal work during the entire lifecycle of the company. This also includes M&A, transactional advisory along with a broad range of practice areas such as franchising, intellectual property and sometimes litigation.
Corporate and commercial legal practice includes a wide range of legal issues when it comes to drafting commercial contracts and agreements. It broadly entails all corporate legal work during the entire lifecycle of the company. This also includes M&A, transactional advisory along with a broad range of practice areas such as franchising, intellectual property and sometimes litigation.
2. What are the types of corporate laws?
Corporate law is the body of laws, rules, regulations and practices that govern the formation and operation of corporations. It’s the body of law that regulates legal entities that exist to conduct business.
3. What are the advantages of hiring a corporate lawyer?
You need a lawyer to help you set up your chart of accounts, review your numbers periodically, and prepare all of your necessary central, state and local tax returns.
4. Why choose Nexjuris as your corporate law firm?
Nexjuris commercial corporate practice has both the in-depth knowledge of business laws and corporate finance as well as the practical advantage of execution into effective compliance and regulatory agreements covering distribution agreements, labor, and employment, joint ventures, etc.
GET IN TOUCH WITH US TODAY
- +91-11-4102 3600
- contact@domainname.com
Quick Links
- Our Journey
- Our Expertise
- Career
- Our Professionals
- Contact Us
- Blogs
- FAQs
Any query? Let’s connect
Delhi (Head Office)
E-274, LGF, Greater Kailash-1, New Delhi-110048, India.
Mumbai
West, Mumbai.
Chandigarh
Chandigarh, 160022