User:Mirtohidali/sandbox

AMALGAMATION AMALGAMATION:- Amalgamation take place when two or more companies doing with similar business join together and a new company is formed to take over the assets and liabilities of the liquidited companies.The share holder of the liquidited companies become the shareholder of the newly formed companies to extent of their holding in old company. ABSORPTION:- Absorption takes place when one existing company observe anather small company carrying of similar business. The purpose of amalgamation or absorption is to elemented computation. Economic in production and deduction of establishment and management expenses. According to companies act 1956.amalgamation includes obserption.thus in case of amalgamation a new company may or may not be formed.