Which of the following are correct about a limited liability company? i. Members have power to bind the company ii. Perpetual succession iii. Certificate of...

Which of the following are correct about a limited liability company? i. Members have power to bind the company ii. Perpetual succession iii. Certificate of incorporation iv. Wound-up on death of a share holder

Answer Details

The correct options are ii and iii only. A Limited Liability Company (LLC) is a type of business entity where the owners are not personally liable for the company's debts or liabilities. The owners of an LLC are called members, and they have limited liability for the company's debts and obligations. i. Members do not have the power to bind the company. This means that they cannot act on behalf of the company without proper authorization. ii. Perpetual succession means that the LLC can continue to exist even if one or more of its members leave or die. The LLC can also continue to exist if it is sold or merged with another company. iii. A certificate of incorporation is a legal document that establishes the existence of an LLC. It contains important information such as the company's name, address, and purpose. iv. An LLC does not automatically wind up on the death of a member. The company can continue to exist with the remaining members, or the deceased member's ownership interest can be transferred to their heirs or sold to another person. Therefore, the correct options are ii and iii only.