Title: Corporate reorganisation option in Fiji: shareholder theory perspective

Authors: Sagar Chand; Shynal Singh; Vinit Singh; Nagma Naicker; Mohammed Riaz Azam

Addresses: Department of Accounting and Finance, The University of Fiji, Saweni, Lautoka, Fiji ' Department of Accounting and Finance, The University of Fiji, Saweni, Lautoka, Fiji ' Department of Accounting and Finance, The University of Fiji, Saweni, Lautoka, Fiji ' Department of Accounting and Finance, The University of Fiji, Saweni, Lautoka, Fiji ' Department of Accounting and Finance, The University of Fiji, Saweni, Lautoka, Fiji

Abstract: The purpose of this study is to explore the factors that influence foreign investors to opt for the corporate split-off reorganisation option in Fiji. This study examined a group of companies owned by foreign investors in Fiji. A case study research design was applied with the theoretical framework informed by shareholder theory. We found that the reasons for foreign investors choosing the corporate split-off reorganisation option in Fiji are to facilitate future mergers and acquisition activities in the event that the shareholders need to divest the assets holding company to achieve asset-light operations. It was also found that this strategy is useful in enabling entities to avoid the legal responsibilities of other organisations within the group as each operates independently. This study attempts to contribute to the limited literature on corporate split-off reorganisation options, especially from a foreign investors' perspective.

Keywords: split-off; corporate reorganisation; foreign investors; tax consequence; strategies; Fiji.

DOI: 10.1504/IJCA.2023.138035

International Journal of Critical Accounting, 2023 Vol.13 No.4, pp.344 - 359

Received: 13 Feb 2023
Accepted: 06 Jan 2024
Published online: 17 Apr 2024 *

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