Share for Share Exchanges

Company Bureau can assist your company with a re-organisation of its share capital by way of a share-for-share exchange, otherwise known as a ‘share swap’.

Share-for-share exchanges, put simply, involve one or more companies whereby shares in one company are transferred in exchange for shares in the other. The result of the exchange is the creation of a group structure, with a parent and subsidiary, and is usually carried out for tax purposes.

A benefit of carrying out a share-for-share exchange is that the company may claim relief from stamp duty and capital gains tax under Sections 79/80 of the Stamp Duty Consolidation Act 1999 and Section 584 & 586 of the Taxes Consolidation Act 1997 respectively. While reliefs are available, it is vital to seek the advice of a tax specialist before entering into a transaction such as this. It may also be wise to consult with legal counsel in advance, as it could affect contracts, employees, company property, or existing shareholder agreements.

Need Assistance?

The statutory and secretarial side of the share-for-share exchange creates a lot of red tape. The company secretarial team at Company Bureau have arranged a significant number of these types of company transactions and would be delighted to assist you with your share swaps. Our team can also put you in touch with a tax advisor in your area, should you need one. Contact our team today on +353(0)1 6461625 or complete our contact form.