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What is reconstruction under Companies Act, 2013?

Meaning of Reconstruction: Reconstruction, in law, is the transfer of a company's (or several companies') business to a new company. The old company will get into liquidation, and shareholders will agree to take shares of equivalent value in the new company.

What is Section 196 and 197 of the Companies Act, 2013?

Brief of Section 196, 197 & Schedule-V of Companies Act, 2013. Sections 196 and 197 of the Companies Act 2013 and the rules made thereunder read together with Schedule V provide for the appointment and remuneration of a managing director, whole-time director, or manager.

What are the objectives of reconstruction?

Objectives of the Internal Reconstruction Get rid of the fictitious assets of the company, such as discounts, preliminary expenses etc. Increase the value of the assets by reducing the share capital of the company. Present an accurate and fair picture of the financial position of the company.

What is reconstruction in company law notes?

Reconstruction of a company is the process of reorganising a company's legal, operational, ownership, and other structures. A new set of obligations are created by revaluing the new company's assets and reassessing liabilities.

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