Difference Between Internal and External Reconstruction

Internal reconstruction is a method of corporate restructuring where an arrangement is made by the company of the organization where in changes in the assets and liabilities are made to improve the financial position without liquidating the company or transferring the ownership to external party, whereas external ...

1. What is the difference between external and internal?
2. What is external reconstruction?
3. What is the meaning of internal reconstruction?
4. What is the purpose of internal reconstruction?
5. What does internal and external mean?
6. What is internal and external process?
7. What is the difference between amalgamation and reconstruction?
8. What are the types of reconstruction?
9. What is amalgamation and external reconstruction?
10. What are the methods of internal reconstruction?
11. What does internal reconstruction require?

What is the difference between external and internal?

The difference between internal and external is that anything internal is on the inside of something, whereas anything external is on the outside of something.

What is external reconstruction?

In other words, external reconstruction refers to the sale of the business of existing company to another company formed for the purposed. In external reconstruction, one company is liquidated and another new company is formed. ... Shareholders of vendor company become the shareholders of purchasing company.

What is the meaning of internal reconstruction?

Internal Reconstruction. • Meaning. It is an arrangement made by the companies whereby the claims of. shareholders, debenture holders, creditors and other liabilities are altered/ reduced, so that the accumulated loss are written off, asset are valued at its fair.

What is the purpose of internal reconstruction?

Objectives of internal reconstruction

To resolve the problem of over-capitalization/ huge accumulated losses/ overvaluation of assets, When the capital structure of a company is complex and is required to make it simple, When change is required in the face value of shares of the company.

What does internal and external mean?

internal = what the character is feeling ( motivation or feelings) external = how the character acts or looks like, kind of physical characteristic Ex.

What is internal and external process?

Landform is a natural feature of the earth's surface. ... The internal process results in a portion of the earth's surface getting elevated or getting sunk. External Process: Continuous wearing down and rebuilding of the earth's surface is the result of external process. Erosion: Removal of materials is called erosion.

What is the difference between amalgamation and reconstruction?

1. Amalgamation of companies involves liquidation of two or more companies, while external reconstruction involves liquidation of only one company, 2. Amalgamation of companies results in combination of companies, but external reconstruction does not result in any such combination.

What are the types of reconstruction?

Types of Reconstruction

• Autologous breast reconstruction.
• Tissue matrix and implant reconstruction.
• Implant reconstruction.
• Tissue expander-to-implant reconstruction.

What is amalgamation and external reconstruction?

(i) In external reconstruction, only one existing company is involved whereas in amalgamation, there are at least two existing companies which amalgamate. ... On the other hand, the objective of amalgamation is to cut competition and reap the economies of large scale.

What are the methods of internal reconstruction?

The methods given below are generally employed to effect the internal reconstruction process:

• Alteration of Share Capital.
• Sub-division and Consolidation of Shares.
• Conversion of shares into stock or stock into shares.
• Variation of Shareholder's rights.
• Reduction of Share Capital.
• Compromise/Arrangement.

What does internal reconstruction require?

In internal reconstruction, court's approval is mandatory, because the reduction in capital may affect the rights of the shareholders, which requires confirmation from the court. ... In internal reconstruction, since there is no new company is formed, there is no transfer of assets and liabilities.