Question

A company has perpetual succession which means ____________________.

• A. Its continued existence for an indefinite period unless its all members dies
• B. Its continued existence for an indefinite period unless its all members become insolvent
• C. Its continued existence for an indefinite period unless its all members become of unsound mind
• D. Its continued existence for an indefinite period unless it is wound up by law.

Answer 1

The correct option is D Its continued existence for an indefinite period unless it is wound up by law.

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.