Internal Reconstruction

Sometimes,when there is controversion of law or if the court thinks it is just and equitable to reconstruct,it will order for such Not by Court means the company will voluntarily opt to reconstruct if it faces Loss or anyother reason

Shankari C

CA Inter

★ 12K+

27-Sep-22 19:27

Not by court is nothing but voluntary reconstruction So company on its own thinks to make internal reconstruction But in case of an order by law Tribunal orders the company to make internal reconstruction So basically diff between internal reconstruction and external reconstruction is in case of external reconstruction reconstruction takes place externally that means some sort of mergers, acquisitions, take overs comes under this criteria But in case of interna reconstruction rights of share holders and creditors will be changed nothing but reconstruction takes place internally

Thanusha Lakshmi

CA Final

★ 3K+

27-Sep-22 21:48