CORPORATE

LAW
QUIZ # 4

SUBMITTED BY:
HAMZA IHSAN SP17-BBA-007

SUBMITTED TO:

MAM HINA ZAHOOR

THURSDAY, MAY 27, 2021

QUESTION:
ABC private company having 5 members only all the members of the company were going for a
trip in relation to the business of the company. An accident took place and all of them died.
Answer with reasons whether the existence of the company has also come to an end.
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.