Demerger of Fixed Assets (Land) which is not related to existing product, Corporate Laws / SEBI / LLP

[Ashok Chopra]

Respected Forum,

Me is a Private Limited Company having Land in the name of the company at various places which is not related to the product being manufactured by us.  Directors of the company are four brothers.  Can we incorporate new company and DEMERGE the said FIXED ASSETS (LAND) from the existing company by reducing Capital  proportionatly.

Please advice me Is it a correct procedure or there any other correct and legal  procedure as we are in the process of introducing PUBLIC ISSUE and we want that Land which is in the name of Company and not related with the product being manufactured  be DEMERGE from existing company.

regards

 

Posts / Replies

[Pradeep Khatri]

Any merger or demerger, spinoff, etc are subject to, submittig information to Commissioner of Compition of India.  Please discuss this matter with you consultant.