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Introduction to Dissolution

Perpetual suc...

Question

Perpetual succession means___.

A

Members may go and members may go but the company goes on forever.

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B

Members may come and members may come but the company goes on forever.

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C

Members may come and members may go but the company goes on forever.

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D

Members may go and members may come but the company cannot go on forever.

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Solution

The correct option is C Members may come and members may go but the company goes on forever.
A company does not cease to exist unless it is specifically wound up or the task for which it was formed has been completed. Membership of a company may keep on changing from time to time but that does not affect life of the company. Insolvency or Death of member does not affect the existence of the company. This means perpetual succession.

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Q. State whether the following statements are True or False:
(a) Registration of a partnership is legally compulsory.
(b) Limited partnership is not allowed in India.
(c) A partnership can take as many partners as it likes.
(d) A minor can become a partner.
(e) Partners may come and go but the partnership goes on forever.
(f) A person becomes a partner on his birth in the family.

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2013

, a company may issue fully paid up bonus shares to its members, out of ___________.

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