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: Find the key idea:
The important words are "members may come and go, but the company continues". The focus is on continuity of the company even after members change.

Step 2: Link to a company feature:
A company has its own legal existence. Death or insolvency of a shareholder does not stop it, and a new shareholder takes the place of the old one. This unbroken chain is called perpetual succession.

Step 3: Test the other choices:
Body corporate tells us about the legal form. Separate legal entity tells us the company and members are different persons. Transferability tells us shares can be sold. None of these speaks about the company living on when members leave.

Final Answer:
Option (4). \[ \boxed{\text{Perpetual Succession}} \]