Consolidation Of Corporations in United States

Practical Information

Note: Some of this information was last updated in 1982

The unification of two or more corporations into a single new corporation (in U.S. law) , which acquires the property and assets and assumes the debts and liabilities of those passing out of existence. In a merger (in U.S. law), an existing corporation absorbs one or more other corporations and remains in existence, the absorbed corporations being dissolved. The distinction between a consolidation and a merger may be of great importance in such matters as tax liabilities, jurisdiction (in U.S. law) of the courts, and special statutory privileges and exemptions. It may be also important to creditors who seek satisfaction of unpaid claims against the constituent companies.

(Revised by Ann De Vries)

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