Consolidation of Corporations Law and Legal Definition
Consolidation of Corporations is the union of two or more corporations in one corporate body, whereby, their properties, powers, rights, and privileges inure to, and their duties and obligations devolve upon, a new organization.
There will be consolidation of corporations only when all the constituent companies cease to exist as separate corporations and a new corporation, the consolidated corporation, comes into being. A corporation formed by a consolidation should be a corporation succeeding to and having, owning, and exercising all the powers, rights, franchises, and immunities possessed by the corporations consolidated into one, provided the consolidating corporations were not parallel or competing. [State ex rel. Nolan v. Montana R.R. Co., 21 Mont. 221, 229-230 (Mont. 1898)].
