ABC Limited is a private limited liability company having 99% of its issued shares subscribed to by John Abela and the remaining 1% by his brother Paul Abela. Paul Abela also holds the post of director together with his brother. Paul Abela passed away in January 2007 leaving his brother John Abela as his sole heir. Despite such events ABC Limited has continued to trade.Required:

(a) Explain whether ABC Limited can continue to exist with a sole shareholder; and (4 marks)