Question

A company has perpetual succession.

• A. True
• B. False

Answer 1

The correct option is A True

Unlike a natural person a company never dies. It is an entity with a perpetual succession.

The life of the company does not depend upon the life of any of its members; it is independent from the lives of its members.

Even the death, insolvency, mental disorder or retirement of a member does not affect the corporate existence of the company.

It is created by the process of law and can be put to an end only by the process of law.

Members may come and go out the company will carry on to exist unless it is wound up. The companies continuous to exist even if it’s all members are dead.