Reverse merger tax relief enables profitable firms to absorb losses of weak firms, subject to eligibility and public interest safeguards. Reconstruction allows judicially sanctioned compromises or arrangements to effect winding up of an existing company and transfer of its assets and liabilities to a new successor company, with shareholders substituted in the new entity, provided the memorandum authorises reconstruction. A reverse merger is an amalgamation where a profitable company merges into a loss making company to obtain tax relief by carrying forward losses, subject to eligibility, exclusion of trading/services, depreciation rules, specified authority recommendation, survival of the sick company, and public interest safeguards.