What procedures must be followed to divide a company?

It is confirmed that you have plans for company division.

When dividing a company, the separated parts are made into either independent new companies or merged with existing companies.

The specific procedures for company division are as follows.

(1) Drafting of division plan and division merger plan

(2) Disclosure of division information of the dividing company

(3) Registration with the Financial Supervisory Commission

(4) Division approval resolution by the board of directors and shareholders' meeting

(5) Conducting creditor protection procedures

(6) Stock consolidation (division) and capital reduction

(7) Reporting meeting and inaugural meeting of the succeeding company

(8) Division registration and submission of division completion report

You also asked about what advantages there are when dividing a company.

First, it allows for independent management by business sector, increasing management efficiency.

Also, the CEO overseeing each divided business unit gains more decision-making authority, and it becomes easier to recruit specialized personnel, so expertise can be enhanced.

In this case, the separated parts are made into either independent new companies or merged with existing companies.

However, since the procedure for dividing a company is complex and legal review is necessary, it is good to receive help from a corporate specialist attorney.

Please predict risks that may arise at each stage and take necessary measures with a corporate attorney.