BANKING AFFAIRS

Detailed explanation-1: -A company is an artificial person created by law. It has separate legal existence, perpetual succession and common seal . A joint stock company is an incorporated or registered association of persons who contribute money to a common stock known as capital of the company.

Detailed explanation-2: -A company is a juristic person with a perpetual succession because it never dies. Unlike the sole proprietorship or a partnership firm which dissolves after the death insolvency or exit of the sole proprietor or a partner a company enjoys perpetual succession.

Detailed explanation-3: -In company law, perpetual succession is the continuation of a company’s/corporation’s or other organization’s existence despite the death, retirement, bankruptcy, insolvency, insanity, change in membership or an exit from the business of any owner or member, or any transfer of stock etc.

Detailed explanation-4: -This means that the company is seen as a separate entity from its participants. It is possessed by at least one shareholder and supervised by at least one director. This separate legal personality means that the company has perpetual succession.

Detailed explanation-5: -Perpetual succession, along with the common seal, is one of the factors explaining a corporation’s legal existence as separate from those of its owners. This principle states that: any change in membership of a company does not affect the status of the company, death, insolvency, insanity etc.