What is a merger?

A merger refers to the legal unification of two or more companies into a single corporate entity. In most cases, one company emerges as the surviving entity, absorbing the others. Alternatively, the process may result in a consolidation, whereby a new entity is established and the original companies are dissolved.

What is the distinction between a merger and a consolidation in the BVI?

A merger occurs when one company remains in existence and incorporates the assets and liabilities of the other entity or entities, which cease to exist. In contrast, a consolidation involves the dissolution of all merging companies and the creation of a new company, which assumes ownership of all assets and liabilities of the former entities.