What is the process for declaring corporate splits?

Corporate splits are a tool used by companies to restructure and reorganize its ownership. In South Carolina, the process for declaring a corporate split is outlined in Section 35-6-210 of the South Carolina Code of Laws. First, the company must submit a written request to the South Carolina Secretary of State which outlines the proposed split plan and provides evidence that all shareholders of the company consent. The Secretary of State will review the request and then publish notice of the proposed split in a newspaper in the county where the company is registered. Second, a hearing must then be held in the county where the company is registered, at which shareholders will have an opportunity to object to the proposed split. The hearing may be held before a judge or jury, and any objections raised must be addressed before the split can be approved. Third, if all objections, if any, are satisfied and the split is approved, the company must submit a copy of the order approving the split to the Secretary of State along with a filing fee. The Secretary of State will then file the order and provide a certified copy of the order for the company’s records. Finally, once all of these steps are complete and the corporate split is finalized, the company will need to address any necessary changes to its corporate structure, including updating its corporate bylaws, issuing new stock certificates, and notifying any financing partners of the change. This ensures that the company is in compliance with the law and that its shareholders are aware of the new structure.

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What is the process for declaring corporate splits?

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