Also found in: Dictionary, Thesaurus, Financial, Idioms, Encyclopedia, Wikipedia.


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.
Mentioned in ?
References in periodicals archive ?
The only dance pro to have been in Strictly from the beginning, Anton, 52, is estimated to earn PS100,000 from yearly spin-offs and Christmas specials with former pro partner Erin Boag, 44.
The spin-off that is subject to certain conditions, will be satisfied on or before the distribution date and the company's stockholders need not vote or take any action to receive the distribution of Newmark common stock shares.
Bratt will remain as president of the Passive Safety business segment of Autoliv until the spin-off.
He said in a video that he believes fans of the show deserve to see the original cast back together in the spin-off because they all contributed to the success of the original run.
The spin-off informants emphasized the importance of understanding both customers' needs or customer's customers' needs, and the potential challenges in serving them.
This spin-off remains subject to the approval of Emergent's board of directors and the satisfaction of certain other customary conditions, including the effectiveness of the Form 10 Registration Statement.
BCG recommends four critical steps designed to ensure that a spin-off ends up in the top quartile.
Should the spin-off occur, the new company would be headquartered at Save-A-Lot's current base in Earth City, Mo.
The company believes the result of the spin-off will be two best-in-class public companies with distinct business models, capital requirements and growth profiles.
We believe a tax-free spin-off of the Materials Technologies business will create significant shareholder value," said Seifi Ghasemi, chairman, president and chief executive officer (CEO) at Air Products.
The spin-off is expected to be completed in the fourth quarter of 2015, subject to final approval by Yahoo's board of directors and the satisfaction or waiver by Yahoo of certain other conditions.
NHF plans to effect the separation through a spin-off in which it will distribute all of the outstanding shares of NXRT common stock to NHF's shareholders on a pro rata basis.