What is CONSOLIDATIONS OF CORPORATIONS? Definition of CONSOLIDATIONS OF CORPORATIONS in Black's Law Dictionary - Legal dictionary - Glossary of legal terms.
Takes place when two or more corporations are extinguished, and by the same process a new one is created, taking over the assets and assuming the liabilities of those passing out of existence. A unifying of two or more corporations into a single new corporation having the combined capital, franchises, and powers of all its constituents. Alabama Power Co. v. McNinch, 68 App.D.C. 132, 94 F.2d 601, 611, 612. Freeman v. Hiznay, 349 Pa. 89, 36 A.2d 509; Murphy v. Niehus, 50 Ohio App. 299, 198 N.E. 197, 200.
Merger distinguished. In a "merger," one corporation absorbs the other and remains in existence while the other is dissolved, and in a "consolidation" a new corporation is created and the consolidating corporations are extinguished. Von Weise v. Commissioner of Internal Revenue, C.C.A., 69 F.2d 439, 442; Alabama Power Co. v. McNinch, 94 F.2d 601, 610, 611, 612, 68 App.D.C. 132. See, also, Merger.
Consolidation rule. In practice. A rule or order of court requiring a plaintiff who has instituted separate suits upon several claims against the same defendant, to consolidate them in one action, where that can be done consistently with the rules of pleading. Brown v. Scott, 1 Dall. (Pa.) 147, 1 L.Ed. 74; Groff v. Musser, 3 Serg. & R. (Pa.) 264; 2 Archb.Pr. 180. The Federal courts are authorized to consolidate actions involving a common question of law or fact. Federal Rules of Civil Procedure, Rule 42, 28 U.S.C.A.
More On This Topic: CYCLONE
---
That's the definition of CONSOLIDATIONS OF CORPORATIONS in Black's Law Dictionary - Legal dictionary - Glossary of legal terms. Courtesy of Cekhukum.com.
