Company Restructuring Solicitors Northern Ireland

Company restructuring involves complex legal considerations to ensure the process complies with relevant laws and regulations. Our team specialises in corporate law and restructuring and can provide support in the planning and execution of company restructuring and can help to navigate these legal considerations effectively and ensure that the process is in compliance with the law. Considerations include:

• Shareholder Approval: Major restructuring decisions often require shareholder approval. Shareholders may need to vote on resolutions, such as mergers, demergers, or changes to articles of association. Our legal experts can advise on the appropriate procedures for obtaining shareholder consent.

• Contractual Obligations: Existing contracts and agreements, including customer contracts, supplier agreements, and leases, need to be reviewed to determine if restructuring will lead to contract breaches or require renegotiation.

• Regulatory Approvals: Certain restructuring activities, especially in regulated industries, may require approvals from government agencies, regulatory bodies, or competition authorities. Our legal team can guide the company through the regulatory approval process.

Debt restructuring is a financial process that involves modifying the terms of outstanding debt to help a debtor manage their financial obligations more effectively. This process can apply to individuals, businesses, or even countries. Debt restructuring is typically pursued when a debtor is facing financial distress or is unable to meet their debt obligations under the original terms. The primary goals of debt restructuring are to make the debt more manageable and to avoid default, bankruptcy, or insolvency.

Financial restructuring is a corporate strategy or process that involves making significant changes to a company's financial structure, often with the aim of improving its financial health and operational efficiency. This type of restructuring is typically initiated by businesses facing financial distress, cash flow problems, or other financial challenges.

Yes, there can be significant tax implications in company restructuring. The specific tax consequences of restructuring will depend on various factors, including the type of restructuring, the jurisdiction in which the company operates, and the applicable tax laws. Our specialist will guide you through what taxes may affect your company. Common tax implications that should be considered during restructuring include:

• Capital Gains Tax: If a company sells assets or divisions as part of a restructuring, it may be subject to capital gains tax on any profits earned from the sale.

• Debt Forgiveness: When a company restructures its debt, such as through debt forgiveness or modification, it could face tax consequences. Debt forgiveness may be treated as income for tax purposes, potentially leading to additional tax liabilities.

• Value Added Tax (VAT): In some countries, restructuring transactions can trigger VAT liabilities. For instance, the sale of assets or the provision of services may be subject to VAT, impacting the overall cost of the restructuring.

• Stamp Duty: Some jurisdictions impose stamp duty on certain transactions, like the transfer of shares or property. The amount of stamp duty payable can vary depending on the nature and value of the assets being transferred.