L22 Lecture Notes - Lecture 11: Securities And Exchange Board Of India, Deferral, Financial Statement
Document Summary
Amalgamation is defined as the combination of one or more companies into a new entity. It includes: two or more companies join to form a new company, absorption or blending of one by the other includes absorption. Amalgamation as its name suggests, is nothing but two companies becoming one. On the other hand, absorption is the process in which the one powerful company takes control over the weaker company. Transferor company means the company which is amalgamated into another company; while. Transferee company means the company into which the transferor company is amalgamated. The brief discussion of the term amalgamation, absorption and external reconstruction are shown in the following smart chart - Amalgamation existing companies a and b are wound up and a new company ab ltd. Reconstruction is formed to take over the businesses of a and b. Existing company b takes over the business of another existing company.
