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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. Anonymous
regards
Bhimireddy
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Distinguish between internal and external reconstruction of a company?
internal reconstruction no new company is formed in external reconstruction an existing company is dissolved and a new company is formed with the same shareholdders. there will be absence of liquidation expenses in internal reconstruction. liquidation expenses is present in external reconstruction.
Distinguish between internal and external reconstruction?
INTERNAL RECONSTRUCTION- when the name of the co. remain as before but changes are made in assets and liabilities of the co. and entries are made in the books of the co. of such changes and balance sheet is amended it is called internal reconstruction. EXTERNAL RECONSTRUCTION- when such heavy changes are not possible or new capital is to be issued or there is much dissent among shareholders or by changing the name of the co. , an effort is made to give new life to the co. the co. is liquidated and a new co. is formed to purchase the assets and liabilities of old co. ,it is called external reconstruction.
Distinguish between Internal External audit?
An internal audit is when someone within your company checks over your books. An external audit is when someone outside of your company checks your books; like the IRS.
Distinguish between in internal and external memory?
Internal Media: Internal media means memory inside the computer like the hard drive and RAM. External Media: External media means removable media like CDs, DVDs and flash drives, which are outside the computer.
What is the difference between external and internal stimuli?
internal is in and external is out
What is the difference between external and internal communications?
What is the difference between external and internal communications
What is the difference between external and internal indicator?
what is the difference between the external & internal indicator
What is Difference between internal and external indicators?
what is the difference between the external & internal indicator
What is the difference between internal and external reproduction?
its internal and then its external. DEERRR
What is the diffrewnt between a internal and a external?
internal = inside external=outside
Difference between internal audit and internal control systems?
Distinguish between internal audit and internal control.
What is the db internal and external frontier?
difference between external and internal frontier
