Moser Bland & Co. affected a significant restructuring for a very large and long term client. Over a 20 year period, our client has grown from a small Sydney based business into a national concern employing more than 100 staff with revenues of $90 million.
Our client had 17 separate entities – companies, trusts, partnerships, etc – and the structure had grown inefficient and unwieldy. Moser Bland & Co. was approached by the client to simplify and demerge the corporate structure.
Moser Bland & Co. developed a strategy to reduce the number of entities from 17 to six, and to quarantine them into two distinct structures. The first was the trading entity structure in which six companies and three family discretionary trusts were reduced to two companies – a holding company and a trading company.
The second was an investment structure which held non trading assets, such as real estate, which comprised a simple partnership. This second structure had a very important asset protection aspect in that it ensured that valuable non-trading assets were protected against unforseen adverse business circumstances.
Confirming that the new transaction complied with all relevant tax legislation, tax rulings, stamp duty legislation and duties rulings, Moser Bland & Co. executed the transaction and implemented the new structure in a complicated process which involved:
- Transferring business operations between companies
- Restructuring ownership of business entities
- Dissolving three family discretionary trusts in accordance with their trust deeds
- Disposing of three companies by deregistration
- Disposing of five companies by members voluntary liquidations
The transaction was structured and implemented in 100% compliance with the planned strategy. The end result for the client was a significant simplification of their group structure resulting in significant savings in administration and internal and external compliance costs.