Comment on the following: Demerger may take the shape of spin-off, split-off or split-up.

Sometimes Demerger takes the shape of: "Spin-off" is a kind of demerger when an existing parent company distributes on a pro rata basis all the shares it owns in a controlled subsidiary to its own shareholders by which it gains effect to making two of the one company or corporation. There is no money transaction, subsidiary's assets are not revalued, transaction is treated as stock dividend and tax free exchange. Both the companies exist and carry on business. It does not alter ownership proportion in any company. "Split-off" is a process of reorganizing a corporate structure whereby the capital stock of a division or subsidiary of a corporation or of a newly affiliated company is transferred to the stakeholders of the parent corporation in exchange for part of the stock of the latter, or 'Split-up' is a process of re-organizing a corporate structure where by all the capital stock and assets are exchanged for those of two or more newly established companies, resulting in the liquidation of the parent corporation.