In an accident, all the members of a company while in general meeting were killed. Decide whether the company ceased to exist.Give reason
Answers
Answer:
the company can decide to ceased to exist because if they a legal authorities
ANSWER:
No. According to Sec 9 of the Companies Act, 2013, a company's existence is not dependent upon its members' life (any or all), therefore death of its members does not affect its existence.
EXPLANATION:
A company is typically an artificial person, and it subsists in contemplation of law and is distinct from its members establishing it. As such, insolvency, death, or "retirement of any" or all members does not affect the company's existence. While members come and go, the company continues ceaselessly i.e. one of the feature of a company is perpetual succession.
The shares of the deceased members would be registered in the name of their legal successors or nominees. The company's existence comes to an end only according to the stipulations of law such as dissolution of the company.