Group of family-run private companies was in deadlock due to family disputes. Family sought to resolve this and ensure continued survival of businesses by dividing them, which involved transfer of various companies’ assets to meet liabilities incurred purchasing shares.
Was obviously financial assistance (FA).
Question was whether it could be saved as being incidental to the larger purpose of re-arrangement of corporate group.
Was no principal or larger purpose that could be relied upon to save transaction.
Even if FA had been given for the reason of allowing restructuring, was still given for the purpose of providing financial assistance with the acquisition of shares.
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