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What Is The Difference Between External And Internal Reconstruction?

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Mayomi Profile
Mayomi answered
Internal Reconstruction:

1. No new company is formed. The existing company continues as a going concern;
2. The ailing company will not gove ito liquidation under the capital reduction scheme and
3. Involves complying the requirements under the Companies Act.

External Reconstruction:-

1. A new company is formed by the existing shareholder of the old company to take over the assets and liabilities;
2. The ailing company goes into liquidation and
3. There is no need to comply with particular clause in the Companies Act.
Mathew Leonard Profile
Mathew Leonard answered
Internal reconstruction is a method of recovering information about a language's past from the characteristics of the language at a later date. External reconstruction  is the process in which one existing company reconstruct itself with new name and identity.

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