SAN FRANCISCO – Yahoo is moving forward with the spinoff of its sizable stake in China’s Alibaba Group, and announced a name for it: Aabaco.

The filing comes ahead of Yahoo’s upcoming second-quarter earnings report set for a webcast on Tuesday, during which shareholders are likely to grill Mayer with questions about its plans for the proposed spin-off. In a statement, the company revealed that it will distribute remaining shares of Aabaco Holdings proportionally among shareholders.

What are your thoughts on Yahoo’s plans to spin its shares of Alibaba off into a new company and avoid shareholder taxation by incorporating its small business service division into the new company?

It also offers a chance for Mayer to show she can lead the company to new heights.

In its securities filing on Friday, Yahoo said that Chinese tax authorities had imposed new rules in February that would potentially subject such transfers to a 10 percent tax, and there has been little guidance on how to interpret those rules. The excision of Alibaba equity from Yahoo will unmoor the American company from the growing profits of the Chinese firm. Yahoo expects the transaction to occur in the fourth quarter, after its one-year lockup agreement with Alibaba expires.

The fund plans to invest at least 80% of its total assets in Alibaba shares under normal market conditions. The stock traded between $76.21 and $120 per share over the past 52 weeks. The stock increased additional 0.44% to $39.85 per share during the extended hours trading following the company’s announcement regarding its regulatory filing. The company lost more than 21% of stock value year-to-date.