DEFINITION of 'Succession'

The action of one party, person or product being replaced by another that has become obsolete, incapacitated, retired or deceased. Ideally, a successor will fill the role of its predecessor, being fully compatible with all other entities in place and perfectly functional without any interruption in service.

BREAKING DOWN 'Succession'

Since the Sarbanes-Oxley Act, planning for succession of a executive officer in a corporation has become a very important issue in the field of corporate governance. Ensuring that, in the event of a problem with one employee, a company will continue to function adequately creates tremendous value for shareholders.

Family succession is the passing of one person's assets and role in the family onto an heir.

With the increasing pace of technological change, when new products replace old ones, it is important those new ones can fill the role of the old products without interruption in service and without the need to replace other functional elements of a network of products.

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  1. Can an IRA beneficiary roll the IRA over into another account and designate another ...

    It depends on the provision of the IRA plan document. Some (though very few) do not allow the designation of successor beneficiaries. ... Read Full Answer >>
  2. Are Cafeteria plans taxable?

    Whether the benefits you receive through your employer-sponsored cafeteria plan are taxable depends entirely on which benefits ... Read Full Answer >>
  3. Why is the Cayman Islands considered a tax haven?

    The Cayman Islands is one of the most well-known tax havens in the world. Unlike most countries, the Cayman Islands does ... Read Full Answer >>
  4. Why is Luxembourg considered a tax haven?

    Luxembourg has been the tax haven of choice for many corporations and mega-rich individuals around the world since the 197 ... Read Full Answer >>
  5. Why is Panama considered a tax haven?

    The Republic of Panama is considered one of the most well-established pure tax havens in the Caribbean due to extensive legislation ... Read Full Answer >>
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