One method of corporate division is a method called physical division. Physical division refers to a method of allocating shares of a new company or succeeding company to a split company in connection with the allocation of shares in connection with corporate split. On the other hand, the method of allocating shares of a new company or succeeding company to shareholders of a split company in connection with the allocation of shares due to company split was called human division. In the case of inheriting a business to a company newly established from an original company, such as a case of merger with M & A, the above-mentioned method of physical division may be used. Particularly in the case of a newly established company, adopting physical division makes it a wholly owned subsidiary of the former company, and the original company can efficiently utilize the divided company. In the first place, the system itself is aimed at raising the efficiency of management, so also with regard to physical division, which is one of the methods of corporate division, this method also improves the efficiency of company management You will be able to do it.

Power balance between parent company and subsidiary, and management efficiency improvement is important.

Physical division is a means to expand business, but it is important to think about how to do it in order to improve management efficiency. Through the physical division, the place where the division is made becomes a wholly owned subsidiary company, but in such circumstances the power of the parent company side becomes excessively strong in some cases. If that happens, there is a possibility that all companies including subsidiaries will not manage well. In order to prevent this from happening, it is necessary to make sufficient adjustments when M & A is done. Under the Corporate Law, all corporate divisions have become a physical division. Then can not human division be done anymore? In distribution of surplus, it is permitted to pay dividends in kind. By utilizing this, we can produce the same effect as human division by delivering the stock of the succeeding company acquired by the split company by physical division as surplus dividend to the shareholders of the split company .