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The CEO of xyz ltd mr.vasudeva died in road accident .will it affect the life of the company ? Why ?

Posted by Swasti Jain 4 years, 1 month ago

CBSE > Class 11 > Business Studies

1 answers

Gaurav Seth 4 years, 1 month ago

It will not affect

Perpetual Succession Company is a legal entity separate of its owners or members. It can be brought to an end only by law as it is created by the law. It will only cease to exist when a specific procedure for its closure, called winding up, is completed. Members may come and go, but the company continues to exist through consecutive succession of old members by new members on a continuous basis. We can say that ‘perpetual succession’ implies permanent existence which is not affected by death, retirement insolvency of members.

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