|This article does not cite any references or sources. (December 2009)|
In company law, perpetual succession is the continuation of a corporation's or other organization's existence despite the death, bankruptcy, insanity, change in membership or an exit from the business of any owner or member, or any transfer of stock,etc.
Perpetual succession, along with the common seal, is one of the factors explaining a corporation's legal existence as separate from those of its owners. This principle states that:
- any change in membership of a company does not anyway affect the status of the company,
- death,insolvency,insanity etc. of any member of a company does not affect the continuity of the company.thus the life of the company does not depend upon the life of its members.
- it shall continue forever irrespective of continuity of its members or directors.except in case of winding up or liquidation of a company.
|This business-related article is a stub. You can help Wikipedia by expanding it.|