Question

The life of a company is not affected by the ___ of a share holder.

• A. Death
• B. Disability
• C. Insolvency
• D. All of above

Answer 1

The correct option is D All of above

The incorporation of a company is an artificial entity recognized by the law as a legal person that exists independently with rights and liability. This means that a company is treated as a separate person from its participants.

This separate legal personality has the consequence that a company has perpetual succession. The life of the company is not affected by the death, disability, insolvency or disagreement of a shareholder. Its existence is ended when it is wound up pursuant to the Companies Acts.The shareholders may come or go the life of the company like an artificial person is least affected by these changes.