Perpetual succession

Perpetual succession – this legal term finds application in the area of Corporate Law. In some legal systems it details the stability and existence of a local corporate body, without any affect by one of its owners or shareholders. This is implementation of the legal principle that corporate entities are usually independent and separate from the physical individuals who own these.

For example, in the local legislation it could be detailed that a company shall continue its existence even if one of the shareholders dies. Another example – the Establishing act of a limited liability company may allow the entity to continue business even if one of the shareholders pulls out, or sells their shares.

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