2 Answers
“Amalgamation Is A Blending Of Two Or More Existing Undertaking Into One Undertaking, The Shareholders Of Each Blending Company Becoming Substantially The Shareholders In The Company Which Is To Carry On The Blended Undertaking. There May Be Amalgamtion Either By The Transfer Of Two Or More Undertakings To A New Company, Or By The Transfer Of One Or More Undertakings To An Existing Company. Strictly ‘Amalgamtion Does, Not, It Seem, Cover In The Mere Acquisition By A Company Of The Sahre Capital Of Other Companies Which Remain In Existence And Continue Their Undertakings, But The Context To Which The Term Is Used May Show That It Is Intended To Include Such An Acquisition."
Amalgamtion can also be defined as “ Amalgamation takes place when two or more comapanies combine into one company, the shareholders in the amalgamting companies becoming substantially the shareholders in the amalgamted company."
In more common way, Amalgamtion would mean the two business entities joining together to make totally new business entity or to allow one business entity to survive absorbing the other one. Amalgamation or merger is also a method of reconstruction. In amalgamation, two or more companies are fused into one by merger or by one taking over the other. When two companies are merged and are so joined as to form third company or one is absorbed into other or blended with another, the amalgamating company loses its identity. There may be amalgamation either by transfer of two or more undertakings to a new company or by the transfer of one or more undertakings to an existing company. An amalgamation may be defined as an arrangement whereby the assets of the two companies which has as its share holders all, or substantially all the share holders of the two companies.
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