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The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders.

When a spin-off occurs, the shareholders of the parent corporation are not required to surrender any of their parent corporation stock in exchange for the subsidiary's stock.

In the event that the distribution of stock to the parent corporation's shareholders amounts to a dividend, the distribution can be taxed pursuant to provisions of Income Tax statutes.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
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If your dining room is narrow Many dining rooms are built as off-shoots of the kitchen or living room.
INTERIOR design firm Dapa started off with humble beginnings but has grown over the past five and half years to employ 24 staff and launch two off-shoot businesses.
The corner shops in the suburbs are also being hit hard from the dual-pronged 'attack' of the economic downturn along with the spread of the supermarkets and their smaller off-shoots in our local areas.
Far out Cantonwards, as far as the tramlines go, to the confines of Ely, there stands a cluster of new streets - Daisy Street, Ethel Street, Ivy Street and Conybeare Road, and numerous off-shoots from the main road at the tram terminus, Clive Road.