MEANING OR PERPETUAL SUCCESSION UNDER COMPANIES ACT 2013

·         MEANING OF PERPETUAL SUCCESSION
COMPANY LAW

·         PERPETUAL SUCCESSION

1.     UNLIKE A NATURAL PERSON A COMPANY NEVER DIES

2.     SECTION 9 OF THE COMPANIES ACT ,2013  IT IS AN ENTITY WITH A PERPETUAL SUCCESSION

3.     COMPANY BEING AN ENTITY SEPARATE AND DISTINCT FROM ITS SHAREHOLDERS,THE LIFE OF A COMPANY IS NOT MEASURED BY THE LIFE OF ANY MEMBER

4.     IT IS INDEPENDENT OF THE LIVES OF ITS MEMBERS

5.     MEMBERS MAY COME,MEMBERS MAY GO IT WILL FLOW LIKE RIVER

6.     THE DEATH OR INSOLVENCY OF THE MEMBER DOES NOT AFFECT THE CORPORATE EXISTENCE OF THE COMPANY.

7.     PERPETUAL SUCCESSION

8.     A COMPANY IS CREATED BY THE PROCESS OF LAW AND CAN BE PUT TO AN END ONLY BY THE PROCESS OF LAW

9.     THE EXISTENCE OF THE COMPANY IS NOT EFFECTED BY THE DEATH OF ALL THE SHAREHOLDERS

10.  A CHANGE IN THE COMPOSITION OF THE MEMBERSHIP DOES NOT EFFECT THE CONTINUED EXISTENCE OF THE COMPANY.

11.  WHERE ALL THE MEMBERS OF A COMPANY WERE KILLED BY THE BOMB,THE COMPANY WAS DEEMED TO SURVIVE. IN SUCH A CASE,THE LEGAL HEIRS OF THE DECEASED SHAREHOLDERS WILL BECOME DIE

·         CASE LEE V LEE’S FARMING CO LTD

·         OF THE 3000 SHARES OF THE COMPANY L HELD 2,999. HE VOTED HIMSELF AS THE GOVERNING DIRECTOR AND CHIEF PILOT OF A SALARY. L WAS KILLED IN AIR CRASH WHILE WORKING FOR THE COMPANY. HIS WIDOW CLAIMED COMPENSATION UNDER WORKMEN’S COMPENSATION ACT. THE COMPANY OPPOSED THE CLAIM STATING THAT LEE WAS NOT A WORKER AS THE SAME PERSON COULD NOT BE EMPLOYER AND THE EMPLOYEE. HELD THERE WAS A VALID CONTRACT OF SERVICE BETWEEN THE LEE AND THE COMPANY. LEE WAS THERFORE A WORKER. MRS LEE’S CONVENTION WAS UPHELD AND HENCE COMPENSATION WAS PAYABLE