Domingos Freire de Andrade writes an article for the Revista da Ordem dos Advogados entitled "The Liability for Debts in Demerger".

"The regime of liability for debts in a demerger is built with a view to protect the partners and corporate creditors of the companies intervening in the demerger operation, having the legislator pro curated to prevent a pernicious use of the demerger and to guarantee the protection of corporate creditors, through a mechanism of a priori protection - the right to submit judicial opposition to the division on the grounds that the division may cause damage to the payment of their credits - and a mechanism of a posteriori protection - the reconstitution of the unity of the split patrimony (which would respond for the satisfaction of debts if there was no division), foreseeing as a rule, under certain circumstances, the joint and several liability of the split company, of the beneficiary companies and even of the members of the management and supervisory bodies".

Read the article here.