Colorado Agreement for the Transfer of Assets to New, Controlled Corporation (Type D Reorganization) -- Split-off
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Description
When shareholders prefer different investments in the future operations of the corporation, a split-off is used. In a split-off, the original corporation transfers some of its assets to a newly formed subsidiary in exchange for all of the subsidiary's stock, which it then distributes to some or all of its shareholders in exchange for some portion of their original stock. As a result, the two corporations are held by the original shareholders but in a proportion that differs from that which they held in the original corporation.
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