Question

1)What does it mean by perpectual succession?

2) why does public company has to under go two more stages than private company ?

Answer 1

1) ​Perpetual Existence simply means that the existence of an organisation is not affected by the death, retirement, and insolvency of its members. That is, the life of the organisation remains unaffected by the life and the tenure of its members in the organisation.

2) The public company has to under go two more stages than private company as public company invites the general public to subscribe to its shares and debentures. On the other hand, public company does not invite the general public to subscribe to its shares and debentures.