Perpetual succession

In company law, perpetual succession is the continuation of a corporation's or other organization's existence despite the death, bankruptcy, insanity, change in membership or an exit from the business of any owner or member, or any transfer of stock,etc.

Perpetual succession, along with the common seal, is one of the factors explaining a corporation's legal existence as separate from those of its owners. This principle states that:

* any change in membership of a company does not affect the status of the company,
* death, insolvency, insanity etc. of any member of a company does not affect the continuity of the company. Thus the life of the company does not depend upon the life of its members.
* it shall continue forever irrespective of continuity of its members or directors, except in case of liquidation (or "winding up") of a company.

This article does not cite any external source. HandWiki requires at least one external source. See citing external sources. Please help improve this article. Unsourced material may be removed in future.
Find sources: "Perpetual succession" – news · newspapers · books · scholar · JSTOR (2021) (Learn how and when to remove this template message)

|

0.00

(0 votes)

Original source: https://en.wikipedia.org/wiki/Perpetual succession. Read more

|

Retrieved from "https://handwiki.org/wiki/index.php?title=Finance:Perpetual_succession&oldid=177975"