Difference between Internal and External Reconstruction




Distinguish, differentiate, compare and explain what is the main difference between Internal and External Reconstruction of a company and organization. Comparison and Differences.

Difference between Internal and External Reconstruction

1. In internal reconstruction, no new company is formed. The existing company continues as a going concern. In external reconstruction, a new company is formed by the existing shareholder of the old company to take over the assets and liabilities.

2. In internal reconstruction, the ailing company will not give its liquidation under the capital reduction scheme. In external reconstruction, the ailing company goes into liquidation.

3. Internal reconstruction involves complying the requirements under the Companies Act. For external reconstruction, there is no need to comply with a particular clause in the Companies Act.


Download PDF

Search More Topics on the Web



Tags:

Difference between External Reconstruction vs Internal

Internal vs External Reconstruction

Differences between External Reconstruction vs Internal

Spreading Knowledge Across the World

USA - United States of America  Canada  United Kingdom  Australia  New Zealand  South America  Brazil  Portugal  Netherland  South Africa  Ethiopia  Zambia  Singapore  Malaysia  India  China  UAE - Saudi Arabia  Qatar  Oman  Kuwait  Bahrain  Dubai  Israil  England  Scotland  Norway  Ireland  Denmark  France  Spain  Poland  and  many more....