Question

Which of the following is not an essential characteristic of a company?

• A. Company is an artificial person created by law
• B. Company has a separate legal entity
• C. Company has not a perpetual succession
• D. Company has a common seal

Answer 1

The correct option is C Company has not a perpetual succession

A company is a separate legal entity different from its members or shareholders. It is an artificial person created by law that can enter into an agreement in its own capacity, can sue and also be sued. It also has a common seal. As a company is an artificial person and not a natural person, it has a perpetual succession. Death of any member or shareholder does not affect its existence.

Thus, the correct answer is C.