Definition of "split-off"
  1. A procedure where a part of a company's assets are transferred to a subsidiary, with the corporation's shareholders giving up a portion of their stock in exchange for the majority stock in the subsidiary. It's a form of D reorganization where a section of the company's stock is exchanged for the subsidiary's stock
How to use "split-off" in a sentence
  1. The owner decided to undertake a split-off, allowing them to exchange some of their company's stock for the ownership of a newly created subsidiary.
  2. In a split-off scenario, shareholders must surrender a part of their current stock in exchange for shares in the subsidiary company.
  3. Through a split-off, a parent corporation can transform a portion of their assets into a separate subsidiary without completely losing control.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z