in company law, transfer of one company’s entire business and assets to a new company specially formed for the purpose whose shares are allotted to the members of the old company. The new company may, for example, have a different capital structure from that of the old, reflecting a loss of capital by the old company, or it may be incorporated in a different country. Sometimes called ‘external reconstruction’ when the term ‘internal reconstruction’ is used for reduction of capital without forming a new company.


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