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Simple English definitions for legal terms
artificial succession
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A quick definition of artificial succession:
Artificial succession is when a group or organization continues to exist even if there are changes in ownership or management. This means that the group can keep going even if the people in charge change. It is also called "vacant succession" or "perpetual succession." This is different from natural succession, which is when things are passed down from one person to another, like when a parent gives something to their child.
A more thorough explanation:
Artificial succession is a legal term that refers to the continuation of a corporation's legal status despite changes in ownership or management. This means that even if the shareholders or officers of a corporation change, the corporation still exists as a legal entity.
For example, if a company is sold to a new owner, the corporation's legal status remains the same. The new owner takes over the management of the corporation, but the corporation itself continues to exist as a separate legal entity.
Another example of artificial succession is when a corporation merges with another corporation. The two corporations become one, but the new corporation still has the same legal status as the original corporations.
Artificial succession is important because it allows corporations to continue operating even if there are changes in ownership or management. This provides stability and continuity for the corporation and its stakeholders.