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Question
Statement I: A company is a creation of the law and only the law can bring an end to its existence.
Statement II: The life of a company does depend on the life of its members.
Options
Only I is correct.
Only II is correct.
Both I and II are correct.
Both I and II are wrong.
MCQ
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Solution
Only I is correct.
Explanation:
Statement I is correct because A company is created by law (by incorporation) and exists indefinitely, independent of its members. The law can dissolve the company, but its survival is not dependent on the lives of its members.
Statement II is incorrect because the life of a company does not depend on the life of its members. A company has perpetual succession, which means it will continue to exist even if its shareholders change, leave, or pass away.
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