Legal Definitions - consolidation of corporations

Definition:Consolidation of corporations refers to the process of merging two or more corporations into a single new corporation or organization. This involves dissolving the existing corporations and creating a new one.

Examples:

• Company A and Company B decide to merge and form a new company, Company C. This is an example of consolidation of corporations.
• Two banks merge to form a new bank. This is also an example of consolidation of corporations.

These examples illustrate how consolidation of corporations involves the combination of two or more corporations into a single new entity. This can be done for various reasons, such as to increase market share, reduce competition, or achieve economies of scale.