What does perpetual succession allow a company to do?
Correct answer: A. Continue despite changes in its members
- A. Continue despite changes in its members
- B. Avoid filing statutory documents
- C. Operate without appointing directors
- D. Distribute profits without approval
Explanation
Perpetual succession means the company continues to exist even when members die, transfer shares or leave the company. Its existence is separate from the changing identity of its members.
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About Company Law Basics
Company law covers incorporation, separate legal personality, limited liability, shares, the memorandum and articles of association, and the powers and duties of directors. It also includes shareholder meetings, resolutions, company records, audit, winding up and the differences between a registered company, partnership and sole proprietorship.
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