There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  A feature of a company is that it has perpetual succession as the death, lunacy, or bankruptcy of a shareholder does not affect its existence, i.e., it continues.
Reason (R):  Shares held in the company are transferable complying with the provisions of law.

Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Perpetual Succession:  The company being an artificial person created by law continues to exist irrespective of the changes in its membership. A company can be terminated only through law. The death or insanity or insolvency of any member of the company in no way affects the existence of the company. Members may come and go but the company continues.
Transferability of Shares:  The shares of a public limited company are freely transferable. The permission of the company or the consent of any member of the company is not necessary for the transfer of shares. But the Articles of the company can prescribe the manner in which the transfer of shares will be made.