Question

Discuss company reorganization

Answer 1

Reorganization of the company refers to the restructuring the financial health of the company so that a company can be revive from the poor financial position. Normally we see that due to very poor financial position or bankruptcy, a company need reorganization. Hence such reorganization is done for re-structuring of financial composition such as; assets, liabilities etc.

Reorganization of the company also refers to the desired change in the ownership of the company, which is done through; merger, acquisition, consolidation etc.

Hence company reorganization is very wider term which denote to re-composition of the existing financial and ownership structure of the company, so that company can be lead to desired motive and can be operated in profitable manner.