What kind of succession applies to a company under the veil of incorporation?

Perpetual succession is a fundamental principle in company law that ensures a company continues to exist independently of the changes in its ownership or membership. This means that the company’s existence is not affected by the death, retirement, or insolvency of its shareholders or directors. The veil of incorporation creates a separate legal entity, which allows the company to endure regardless of the changes in the individuals involved in its operations.

This characteristic of perpetual succession provides stability and certainty in business operations, as it guarantees that the company's obligations and rights are not terminated by the departure of individuals associated with it. This concept contrasts sharply with other forms of succession, such as conditional succession, which would imply that the existence depends on specific conditions being met, or limited duration succession, which suggests a finite life span or existence determined by predetermined factors.