What is CONSOLIDATION OF CORPORATIONS?

The union or merger into one corporate body of two or more corporations which had been separately created for similar or connected purposes. In England this is termed “amalgamation.” When the rights, franchises, and effects of two or more corporations are, by legal authority and agreement of the parties, combined and united into one whole, and committed to a single corporation, the stockholders of which are composed of those (so far as they choose to become such) of the companies thus agreeing, this is in law, and according to common understanding, a consolidation of such companies, whether such single corporation, called the consolidated company, be a new one then created, or one of the original companies, continuing in existence with only larger rights, capacity, and property. Meyer v. Johnston, 64 Ala. 050; Shadford v. Railway Co., 130 Mich. 300, 89 N. W. 960; Adams v. Railroad Co.. 77 Miss. 194, 24 South. 200. 28 South. 950, 00 L. It A. 33; Pingree v. Rail road Co., 118 Mich. 314, 76 N. W. 635, 53 L. R. A. 274; People v. Coke Co., 205 111. 482. 68 N. E. 950, 98 Am. St. Rep. 244; Ruford v. Packet Co., 3 Mo. App. 171

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