What is enterprise reorganization, merger and division?

Corporate reorganization has two meanings: broad sense and narrow sense. The narrow sense of corporate restructuring is limited to corporate mergers and acquisitions, including corporate mergers, corporate acquisitions and corporate separation (separation). In a broad sense, corporate restructuring refers to various commercial activities between companies, between shareholders and companies, and between shareholders, in order to realize the rational flow and optimal allocation of corporate resources according to the principle of autonomy in private law. Company division refers to the division of a company into two or more companies by a resolution of the shareholders' meeting in accordance with the relevant provisions of the Company Law.

legal ground

Article 172 of the Company Law

Company merger can adopt absorption merger or new merger. A company absorbs other companies for merger, and the absorbed company is dissolved. The merger of two or more companies to form a new company is a new merger, and the parties to the merger are dissolved.