Question

"Members may come and go, but the company continues. Even an atom bomb can't end a company".

Which feature of a company is highlighted in the above statement?

• A. Body Corporate
• B. Separate Legal Entity
• C. Transferability of Shares
• D. Perpetual Succession

Hint:

The company lives on when members die or leave. That is perpetual succession.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
A company is an artificial person created by law. Its life does not depend on the life of its members. This idea is a basic feature of company law.

Step 2: Read the statement:
The statement says members may come and go, yet the company continues. It also says even a bomb cannot end a company. So the point is that the company keeps existing whatever happens to its members.

Step 3: Check option (1).:
Body corporate means the company is a legal body created by law. The statement is not about how the company is formed. So (1) is wrong.

Step 4: Check option (2).:
Separate legal entity means the company is distinct from its members, who are not liable for its acts. The statement does not talk about this separation. So (2) is wrong.

Step 5: Check option (3).:
Transferability of shares means a member can sell his shares freely. The statement says nothing about shares. So (3) is wrong.

Step 6: Check option (4).:
Perpetual succession means the company has an unending life. Death, insolvency or exit of members does not end it. Only winding up under law can end it. So (4) is correct.

Final Answer:
The feature shown is perpetual succession, option (4). \[ \boxed{4} \]