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" LAW ON THE MERGER OF COMPANIES   LAW ON THE MERGER OF COMPANIES   By   Dr. Shaukat Husain, Advocate Supreme Court of Pakistan   An amalgamation is the process by which two or more companies or legal persons merge into a single entity or one is absorbed into or blended with another1. The power to amalgamate should have been provided in the Company's Memorandum. If it is not there it should be acquired by altering the memorandum2. The company adopting the scheme of amalgamation should not necessarily be in financial hardships or that it should not be a well-off Company. When two or more companies are joined to form a third entity, it is said that amalgamation has taken place. However, there is a distinction between 'reconstruction' and 'amalgamation'. There is reconstruction of a company when that company's undertaking and business are transferred to another company doing the same business and the same persons are interested in it as in the case of the Old Company3. For several purposes the reconstruction may become essential. New objects can be adopted only by the process of reconstruction4. A reconstruction may also become necessary to cause material a erations of the rights of a class of shareholders or creditors5. Amalgamation occurs when two or more companies have merged with another to form a third entity. The effect is to wipe o it the merging companies and to fuse them all into a new one created. The new company comes into existence having all the property, rights and powers and subject to all duties and obligations of all the constituent companies.   1. Somayajula v. Hope Prudhomme & Co. Ltd. [1963] 2 Comp.LJ 61.   2. Hari Krishna Lohia v. Hoolungooree Tea Co. [1970] 40 Comp.Cas. 458, 463 (Cal.) and PMP Auto Industries Ltd.…