Article 566 — Division of a Business Organization

1/ Division is the operation whereby a business organization is wound up without liquidation by transferring all its assets and liabilities to more than one preexisting organizations or organizations newly formed by it. The shareholders or partners of the business organization that is divided are issued in exchange shares in the organizations to which the assets are divided. They may also be given, as the case may be, additional payment in cash. 2/ A division by acquisition is the operation whereby a business organization is wound up without liquidation by transferring all its assets and liabilities to more than one other preexisting organizations; the shareholders or partners of the business organization that is divided are issued in exchange shares in the organizations to which the assets are divided; they may also be given, as the case may be, additional payment in cash. 3/ A division by the formation of new organizations is the operation whereby a business organization is wound up without liquidation by transferring all its assets and liabilities to organizations formed by it. The shareholders or partners of the business organization that is divided are issued in exchange shares in the organizations to which the assets are divided. They may also be given, as the case may be, additional payment in cash. 4/ Dividing a certain portion of asset means separating a business unit that can subsist separately or part of assets of an organization and transferring the same to a business organization that is under formation or to an existing organization by way of contribution. 5/ Division may take place into any type of business organization.