answersLogoWhite

0

Internal reconstruction is an arrangement made by companies whereby the claims of share holders, debenture holder, creditors and other liabilities are reduced or altered, so that the accumulated losses are written off, assets are valued at its fair value and the balance sheet shows the true and fair view of the financial position.

User Avatar

Wiki User

14y ago

What else can I help you with?

Continue Learning about Other Business

What is Internal reconstruction in company?

Capital of a company is reorganized to infuse new life in the company.


What is the Importance of articles of associations of a company?

Articles of Association, the second important document of a company, contain rules, regulations and bye-laws for the internal administration of the company. The articles regulate the internal management of the company. Articles define the powers of the directors and other officers of the company. Articles also govern the relationship between the company and its constituent members by prescribing the rights and obligations of the members of the company.


What is external reconstruction of a company?

External reconstruction of a company refers to the process of restructuring a firm's financial and operational framework through external means, such as mergers, acquisitions, or major partnerships. This strategy is often employed to improve financial stability, enhance market position, or achieve growth objectives by leveraging resources and strengths from outside the organization. External reconstruction can involve significant changes in ownership, management, or business strategies to adapt to changing market conditions or to overcome financial distress.


Are shareholders of Asda internal or external?

Shareholders of Asda are considered external stakeholders, as they are individuals or entities that own shares in the company but are not involved in its day-to-day operations or management. They have a financial interest in the performance of the company but do not participate in its internal decision-making processes.


Define internal sources of information?

the sources of info. is the important sources to produce , a company or what ever the sources is the biggest part our move or etc

Related Questions

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.


What is Internal reconstruction in company?

Capital of a company is reorganized to infuse new life in the company.


Distinguish between internal and external reconstruction of?

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


Under what circumstances internal reconstruction becomes desirable how it is affected?

It's also desirable to use internal reconstruction to uncover an earlier form of various languages, and to submit those pre- languages to comparative method.


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.


Make a sentence using the word internal?

The internal politics of this company are very complicated.He gave them some internal information about this company.


What do you mean by internal and external liability of the company?

internal liability mean that company will pay salary, so salary is internal liability, and the company will pay interest to bank it is external liability.


What is internal hire?

When a company chooses to fill an open position with someone who is already employed in the company, this is an internal hire.


When do internal reconstruction becomes desirable?

Internal reconstruction becomes desirable when there is significant damage or deformity within a structure, such as bones, organs, or tissues, that affects functionality or quality of life. It is often pursued after trauma, congenital abnormalities, or disease processes that compromise the integrity of the affected area. The goal is to restore normal function, enhance aesthetics, and improve overall health outcomes. Additionally, internal reconstruction may be indicated when external interventions are insufficient to address the underlying issues.


What is internal liability of business?

The total amount of debts payable by a business to its owners are called internal liabilities e.g., capital.Example-For a company Internal liability mean that company will pay salary, so salary is internal liability, and the company will pay interest to bank it is external liability.


What does the cpt code 21195 stand for?

Reconstruction of mandibular rami and/or body, sagittal split; without internal rigid fixation


Letter requesting a internal transfer opportunity in your company?

When writing a letter to request an internal transfer within your company, be professional. Outline your qualifications and how you intend to help the company if you are given this transfer.