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Simple English definitions for legal terms
perpetual succession
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A quick definition of perpetual succession:
Perpetual succession means that a company or organization can continue to exist even if the people who started it or work for it change. It's like a game of passing the baton, where the baton represents the company. Even if the people holding the baton change, the game can continue as long as the baton is passed on. This is important because it allows companies to keep operating and serving their customers for a long time.
A more thorough explanation:
Perpetual succession refers to the continuous existence of a corporation, despite changes in shareholders and officers, for as long as the corporation legally exists.
For example, if a corporation is established with perpetual succession, it will continue to exist even if the original shareholders sell their shares or if the original officers resign and are replaced by new ones.
This concept is important because it allows corporations to operate indefinitely, which can be beneficial for long-term planning and investment.