5 persons are the only members of a private company. All of them go in a boat on pleasure trip into the open sea. The boat capsizes and all the 5 dies being drowned. Does the private company cease to exist?
Answers
Answered by
11
No, the private company ceases to exist.
- The company will still exist as the existence of a company does not depend on the life or death of people in it. This law can be observed under Sec 9 of Companies Act, 2013.
- A company will only cease to exist when dissolved properly based on law.
- Hence, the private company will not end even after the death of all its members.
Answered by
4
The answer to the above question is: the company will not get dissolved.
Explanation:
- In such a situation, if all the partners of the firm dies, the firm will not dissolve.
- According to the law that is observed under Sec 9 of Companies Act ,2013, it states that the existence of the company does not depend on the death of the people/ partners in it.
- In this situation, any provision that is present in the memorandum, agreement or article will be divided or distributed according to the law.
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