Perpetual succession means a joint-stock company has 'continuity of life'. According to Lord Gower, "Members may come and go but the company can go on forever". This is because company's existence does not depend upon the existence of even promoters who were instrumental in its formation. Neither change in the membership of the company nor the death of its members has any impact on the continuity of its life.

Minimum subscription must be received within 90 days from the date of prospectus, No allotment shall be made unless the amount stated in the prospectus as minimum subscription has been received and the application money on these has been received. If minimum subscription is not received within 90 days of the issue of the prospectus, money received on application must be refunded.

In a company limited by guarantee the liability of a shareholder is limited to the amount he has voluntarily Undertaken to contribute to meet any deficiency at the time of its winding up. Such a company mayor may not have a share capital. If it has a share capital, a member's liability is limited to the amount remaining unpaid on his shares plus the amount guaranteed by him.

As per Section 2(87) "subsidiary company" or "subsidiary", in relation to any other company (that is to say the holding company), means a company in which the holding company-
(i) Controls the composition of the Board of Directors; or
(ii) Exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies.

A company limited by guarantee is a company in which the liability of its members is limited by its memorandum to such an amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up. Such companies are generally formed for the promotion of Commerce, Art, Science, Religion, Charity or any other useful object. The companies limited by guarantee may be either private companies or public companies.