Speed Read: In a demerger, it will be important to establish the rights of, and implications for participants in employees' share schemes. These can be complex and will depend on the precise structure of the transaction. A number of tax, commercial and practical issues should be considered to ensure that wherever possible, employees are treated fairly and given the necessary information to enable them to take action to preserve their rights. Examples of different demerger structures are demergers by way of dividend; 'three cornered' reduction of capital and scheme of arrangements; and s 110 liquidation schemes.
