Question

five person's are the only members of a private company. all of them go in a trip into open sea. the boat capsizes and all the five die being drowned. is the company no longer in existence? pls write short note​

Answer 1

No, the private company ceases to exist.

~ The company will still exist as the existence of a company does not depend on the life or death of people in it. This law can be observed under Sec 9 of Companies Act, 2013.

~ A company will only cease to exist when dissolved properly based on law.

~ Hence, the private company will not end even after the death of all its members.