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Question
Explain the following term/concept.
Perpetual Succession
Solution
(1) The term ‘perpetual’ means eternal or everlasting. A joint-stock company has perpetual succession i.e. continuous existence.
(2) A company is an artificial (legal) person created by the process of law and dissolved only by the process of law. It enjoys a very long and stable life unless it is wound up through the legal process.
(3) The company’s existence and continuation are not affected by death, retirement, insolvency, or insanity of its member or members. The company continues to exist in spite of the changes in its membership. Members may come and go but the company can go on forever.
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