In accordance with Article 53 of the Law of Turkmenistan on Enterprises, the division and separation of enterprises is carried out as follows:
- The division of an enterprise is carried out by dividing the property of this enterprise between two or more newly emerging enterprises. At the same time, the rights and obligations of the divided enterprise are transferred to newly emerging enterprises in accordance with the separation balance sheet. The division of an enterprise entails the termination of its existence as a legal entity.
- The separation of one or several enterprises from an enterprise is carried out by separating a part of the property belonging to it and transferring it to one or several newly emerging enterprises. At the same time, part of the rights and obligations of the reorganized enterprise is transferred to newly emerging enterprises in accordance with the separation balance sheet. An enterprise from which another enterprise was spun off continues to be an independent subject of economic activity.
- Unless otherwise provided by the charter of an enterprise based on the principle of equity participation in the authorized capital, upon its division, separation, each participant has the right to receive a share in the authorized capital of each of the newly emerging enterprises equal to his share in the authorized capital of the enterprise being reorganized. When dividing, separating an enterprise, the ratio of the shares of participants in the authorized capital, which existed before the division, in newly formed enterprises can be changed.
Source: Law of Turkmenistan on Enterprises
