Question

What do you mean by internal reconstruction of a company and what are condition to be satisfy for internal reconstruction of company?

Answer 1

Internal reconstruction is a kind of reconstruction where the rights of shareholders are not required to be altered. In internal reconstruction, a company doesn't lose its existence, but it results in capital reduction.
Generally companies go for internal reconstruction when they continuously suffer from over capitalization or under capitalization.
Court order is a must for internal reconstruction. No transfer of asset or liability is undertaken.