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  • Read the following passage and answer the questions  Law attributes personality to all those entities that are capable of bearing rights or duties, so any entity whi

Read the following passage and answer the questions 

Law attributes personality to all those entities that are capable of bearing rights or duties, so any entity which is capable of the same is treated as a person or personality under the law whether or not that entity is a human being or not. Such a conception of legal personality has resulted in the inclusion of entities like companies, idols, etc. A mere association of individuals does not form a legal person until the law recognizes, over and above the associated individuals, a fictitious being that represents them but it is not identical with them.

Legal personality is a particular device by which the law creates units to which it ascribes certain powers. One of the essential requirements of a legal personality is that the personality may, possess status.

Professor Keeton observes that the juristic person is the personification of the sum total of legal rules applicable to a plurality of persons. The conception of the juristic personality involves a double fiction, at first by fiction we create a unity, and then by a second fiction we attribute to it the wills of individual men. Salmond defines a juristic person as any subject- matter other than a human being to which the law attributes personality. The dead person is not a legal person as he cannot be a bearer of rights and duties; though the law does prohibit defamation of the dead (Section 499, The Indian Penal Code, 1860) as well as give effect to his will. Everyone is interested in maintaining a reputation even after death. The reputation of a dead person receives some degree of protection from criminal law. A defamation suit can be filed for the loss of reputation of a dead person. If the publication is an attack on the internet of living persons, as a matter of fact, this right is in reality not that of the dead person but of his living descendants.

Question: Kolo Co. Ltd. Is in the news because the majority of shareholders died during a fire accident at their annual meeting. The remaining shareholders also sold off their shares, in the present situation with the change in core members and shareholders of the company whether the company still subsists.

 

 

Option: 1

Yes, the company subsists because not all the members died

 


Option: 2

 Yes, the company subsists because the heirs of shareholders are still alive


Option: 3

Yes, the company subsists because its existence is independent of the existence of the shareholders

 


Option: 4

No, the company cannot subsist without its original shareholders

 


Answers (1)

The company has a separate legal personality; its existence is independent of the existence of the shareholders. A company will remain in existence even if all its members change or even if all its members die.

Posted by

Ramraj Saini

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