What is a consequence of the veil of incorporation?

The consequence of the veil of incorporation that pertains to perpetual succession relates to the fundamental principle that a company is treated as a separate legal entity from its shareholders. This means that the company continues to exist independently of changes in ownership or the status of its shareholders.

Perpetual succession ensures that the company's existence is not affected by the death, insolvency, or departure of its members. This stability is crucial for the continuity of business operations, allowing the company to enter contracts, own assets, and incur liabilities that are distinct from the personal affairs of its shareholders.

In contrast, the other choices do not accurately represent the essence of incorporation. For instance, direct liability for shareholders contradicts the protective nature of incorporation, which limits shareholders' liability to the amount unpaid on their shares. Complete control by shareholders does not necessarily reflect the separation of management and ownership often seen in incorporated entities. Lastly, shared ownership of property among shareholders could imply joint ownership outside the corporate structure, which does not apply as the company itself is the legal owner of its assets. Thus, perpetual succession serves as a crucial benefit of incorporation, ensuring the longevity and resilience of the corporate entity.