Perpetual Succession
Company continues regardless of changes in ownership or management under the Companies Act, 2013
What is Perpetual Succession?
📌 Overview
The company continues to exist even after the death, insolvency, or exit of any director or shareholder. This ensures business stability and continuity.
✅ Key Benefits
Business continues uninterrupted. Contracts, assets, and liabilities remain with the company. Easy succession planning for family businesses.
⚖️ Legal Framework
Section 9 of the Companies Act, 2013 establishes perpetual succession. The company is an artificial person created by law.
Important FAQs
❓ FAQ 1
What happens to the company if all directors die? The company continues; new directors can be appointed by shareholders.
❓ FAQ 2
Can perpetual succession be ended? Yes, through voluntary liquidation or court-ordered winding up.
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