Tuesday, October 16, 2007

Companies Act_practical problems_1

Both the shareholders of the Private Company died in a car accident. Decide whether Company’s existence also comes to an end.

The Company’s existence is not affected by the death of its shareholders, since the Company has separate legal entity. This is clearly established in Salomon Vs. Salomon & Co. Ltd, Lee Vs. Lee Air farming Ltd & Kandoli tea Co. Ltd. cases. Further the Company has having perpetual succession.

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