Advertisements
Advertisements
Question
Explain the following term/concept.
Memorandum of Association.
Solution
(1) Meaning: The Memorandum of Association is the basic, fundamental, and principal document of a company with which the company is registered. It serves as the constitution of the company. It defines the scope of the activities of the company, the relationship of the company with the outside world, its objects, the extent of and limitations to the powers of a company.
(2) Clauses: It contains six clauses, viz.,
(1) the name clause
(2) the address clause
(3) the objects clause
(4) the liability clause
(5) the capital clause
(6) the association or subscription clause.
(3) Purpose: The purpose of the Memorandum is to enable the shareholders, creditors and all those who deal with the company to know the permitted range of the activities of the company.
APPEARS IN
RELATED QUESTIONS
Answer in one sentence.
Which document contains the aims and objectives of the company?
Answer in one sentence.
What does the capital clause describe?
Correct the underlined word and rewrite the following sentence:
Articles of Association state the aims and objectives of the company.
Correct the underlined word and rewrite the following sentence:
Prospectus contains a liability clause.
Explain the following term/concept.
Ultra Vires act
Explain the following term/concept.
Doctrine of Indoor Management
Answer in brief:
State any four clauses of a memorandum of association:
Answer in brief:
State any four content of articles of association
Justify the following statement.
Memorandum of Association defines the limitations of the powers of the company.
Justify the following statement.
Ultra Vires acts are null and void
Answer the following question:
Briefly explain the clauses of Memorandum of Association.
Answer the following question:
Define Memorandum of Association. Explain its features.
