LEGAL REGULATION OF DIVISION AS A FORM OF REORGANIZATION OF BUSINESS COMPANIES

Abstract

Purpose. The article addresses the issue of division as one of the most relevant procedures of reorganization of legal entities in the contemporary national economic space. The study aims to clarify the legal nature of division, its place within the system of corporate transformations, and its conceptual understanding in doctrine and legislation.Methods. The research is based on a combination of general scientific and special legal methods. The dialectical method was used to identify the evolution of the concept of division. Comparative legal analysis enabled the study of legislation and practice in Ukraine and selected EU Member States, including Poland,Germany, and Italy. The formal-legal method was applied to interpret relevant provisions of national and European legislation, in particular EU Directive 2017/1132, which harmonizes key aspects of corporate law. Doctrinal analysis was used to examine divergent scholarly views on the type of legal succession in cases of division.Results. The study demonstrates that the legal regulation of division in Ukraine remains fragmentary and insufficiently systematized, being explicitly provided only for certain organizational and legal forms such as joint-stock companies and limited liability companies. In contrast, EU legislation establishes two primary forms of division of joint-stock companies: by acquisition and by the creation of new companies, with the latter largely corresponding to the Ukrainian model. Conclusions. The research confirms that the institution of division as a form of reorganization of legal entities requires substantial doctrinal clarification and legislative refinement in Ukraine. Harmonization with EU law, particularly with Directive 2017/1132, appears to be a crucial step toward ensuring systemic, consistent, and effective regulation.