What is a company reorganisation and what are the legal implications?

Reorganising your business’ ownership, operational structure, and legal constitution can result in many business benefits such as improved profitability, greater productivity, or better use of assets.

Reasons for restructuring include integrating an acquisition, the retirement of a major shareholder, transferring business assets, selling part of the business, and enabling the firm to stay afloat during difficult times.

Reorganisation is often distracting for owner-managers and keeping your eye on the ball while the process is under way can be challenging, even for the most capable management teams.

Legal and financial documents must be thoroughly considered and technically complex decisions made. While all this is happening, you must take care not to demotivate your workforce by creating uncertainty and instability.

This is where specialist corporate lawyers add significant value by advising management teams on the implications of company reorganisation and setting out the various options clearly and objectively.

Appropriate tax advice is vital to any reorganisation because serious financial consequences can ensue if tax law issues are not thoroughly resolved.

A corporate legal team will enable a business to reorganise in a legally compliant manner, while minimising operational disruption and avoiding dips in productivity.

If you would like to discuss this, or any other corporate legal matter, please contact David Filmer on 01772 258321, or at david.filmer@harrison-drury.com