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CA Inter doubt

In ................ , an existing company 's financial structure is reorganized without liquidating the existing company and forming a new company. a) amalgamation b) external reconstruction c) absorp

Asked by Ishika31 Aug 20261160 views

2 answers

  1. Aslam · 31 Aug 2026

    It’s internal reconstruction as Reorganizes a company's capital and financial structure (e.g., reduction of share capital, altering rights of shareholders/creditors) internally. The existing company continues its legal existence—no liquidation occurs, and no new company is formed

  2. Sakina · 31 Aug 2026

    none of the above I guess ​Amalgamation: Two or more companies combine into a single entity, requiring at least one existing company to liquidate. ​External Reconstruction: An existing company liquidates so a brand-new company can be formed to take over its business. ​Absorption: One company completely takes over another, resulting in the liquidation of the absorbed company. ​Internal Reconstruction: An existing company reorganizes its financial and capital structure without liquidating or forming a new company

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