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  1. To reduce the nominal value of shares to their actual value.

  2. To present the true and fair position of the company by writing off the past year's accumulated losses and by writing down the value of assets to their actual values.

  3. To create confidence among the shareholders by assuring them a fair return ok their actual investments.

  4. To write off the fictitious assets such as discount on issue of debentures, etc.

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Deepa Kushwaha

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2y ago
This answer is:
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Demetrius Parisian

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2y ago
great answer ty!
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Vincent Schneider

Lvl 1
2y ago
can you explain how you know that?
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Anonymous

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3y ago

Advantages or objectives of internal reconstruction are:

1. To reduce the nominal value of shares to their actual value.

2. To present the true and fair position of the company by writing off the past year's accumulated losses and by writing down the value of assets to their actual values.

3. To create confidence among the shareholders by assuring them a fair return ok their actual investments.

4. To write off the fictitious assets such as discount on issue of debentures, etc.

This answer is:
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Q: What are the advantages of internal reconstruction?
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