When a consolidation takes place,the newly formed corporation issues shares or pays fair consideration to the shareholders of any corporation that ceases to exist.

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When a consolidation takes place, the newly formed corporation issues shares or pays fair consideration to the shareholders of any corporation that ceases to exist. This is done in order to compensate the shareholders of the dissolved corporation for their investment and to integrate their assets and liabilities into the newly formed corporation.

When a Consolidation Takes Place,the Newly Formed Corporation Issues Shares