This chapter considers the termination of share interests. This may involve a termination of some of the rights attached to shares and here the tax treatment of returns of capital and capital cancellation are considered. It might also involve termination of shares, but not the corporation itself. Here the discussion considers the tax treatment of share redemptions and share buy backs. Thirdly, shares may be terminated when a corporation is liquidated. Liquidations involve either a solvent or an insolvent corporation. The liquidation of insolvent corporations raises issues regarding whether any losses may be restricted due to a change of control and whether and when the corporation might be considered to leave a corporate group. The liquidation of a solvent corporation involves the return of capital to shareholders as well as a share of retained profits. Liquidation distributions raise the issue of whether the distribution should be treated more like a dividend (Chapter 2) or more like the disposal of shares (Chapter 5) and reconciliation between them. This chapter also contrasts the tax treatment of the various methods of returning value to shareholders whether in the form of dividends, gains on disposal of shares, share buy backs and liquidation distributions.

This chapter considers the change of an existing share interest in some form. There is a realisation event, either by issuing, transferring or terminating share interests. The change can be by substitution, such as on the exercise of options or convertible notes. It might be by way of splitting and here the focus is on the tax treatment of bonus shares or stock distributions. It can also be by way of consolidation. All of these corporate reconstructions raise the issue of whether the investor’s interest in the corporation has changed sufficiently to justify the imposition of tax consequences. Similar issues arise where more than one corporation is involved in the change. So, in a corporate merger, a shareholder in the target may exchange their shares in return for shares in the bidder. Consideration is given to mergers by fusion and mergers by share exchange. Such mergers raise change of ownership issues (Chapter 5) similar to those raised in the context of a cash takeover. Demergers involve the splitting of a business or subsidiary from the holding corporation, and this can result in the investor holding two sets of shares post demerger. Issues raised are similar to for bonus shares.

While company law makes great efforts to maintain the separation of different legal entities, other areas of law increasingly emphasise the common responsibility of corporate groups. One of the fields shaping this emerging principle is competition law, where focusing on the whole group rather than its individual members is increasingly becoming the norm. But this approach is still far from being uniformly accepted. While EU competition law is pushing ahead, US antitrust law is said to take a rather critical stance. Against this background, this chapter examines the functions performed by a unitary perspective on corporate groups. The main goal is to show that at least three important functions must be distinguished in EU competition law, each of which has its own implications. Only when these are properly understood can it be determined where the group perspective is appropriate and where it is not. This is shown by the example of current discussions, for example, on the liability of sister companies and on possible applications in the area of liability for damages. Finally, the analysis in this chapter also aims to contribute to a better understanding of the different approaches in EU and US competition law.

Chapter 4 presents kin group as an etic category that we can use to study ancient Egyptian relatedness. Kin group can be categorised as a polythetic class with a number of concurring attributes, not necessarily existing simultaneously. The six attributes that the primary sources reveal for kin groups in ancient Egypt are that they all live in the same household or area; they are displayed and commemorated together on monuments; they can function as and economic units or corporate groups; they are under the authority of one man who acts as the head of the group; they are buried together or close to each other in the same area of the necropolis; and they hold reciprocal duties with living and deceased members of the group.

This definition of kin groups is thus flexible and purely performative, as it based on what a kin group does rather than on what it is supposed to be. The main attribute is arguably display and commemoration, because most of the sources tend to be monumental in nature, representing an idea of the group that Egyptian themselves were trying to transmit to their contemporary and future audiences.

The chapter examines the merits of current and proposed EU regulation in the area of corporate sustainability with a particular emphasis on corporate groups. It provides an overview of the EU approach to corporate sustainability and its perception of sustainability as a legal concept, and then considers the importance of corporate groups in the global market and the inherent challenge of regulating cross-border activity. Building on a heterogeneous perception of groups, the chapter examines the current state of EU sustainability initiatives for corporate groups, and considers the extent to which the EU has managed to harness its influence to steer corporate groups onto a sustainable pathway.