Accounting · Corporate Accounting
Consider the following statements regarding the reconstruction of companies: Statement 1: Internal reconstruction involves winding up a company's financial affairs and liquidating the existing legal entity to form a new company. Statement 2: Court/Tribunal approval is mandatory in internal reconstruction when a reduction of share capital affects the rights of shareholders and creditors. Choose the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement 1 is false, but Statement 2 is true.✓
- 2Statement 1 is true, but Statement 2 is false.
- 3Both statements are false.
- 4Both statements are true.
Correct answer
Statement 1 is false, but Statement 2 is true.
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