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Question
State whether the following statement is True or False:
Memorandum of Association and Articles of Association is prepared at the time of incorporation of a company.
Options
True
False
Solution
True
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RELATED QUESTIONS
Select the correct answer from the option given below and rewrite the sentence.
_________ clause states the amount of Authorised capital with which the company is registered.
Match the pairs:
| Group ‘A’ | Group ‘B’ |
| a) Capital clause | 1. Details of capital structure of a company |
| b) Liability clause | 2. Used for multiple issue of shares |
| c) Acts beyond the powers of Memorandum | 3. Abridged Prospectus |
| d) Red Herring Prospectus | 4. Describes main objectives |
| e) Shelf Prospectus | 5. Used for Rights Issue |
| 6. Incomplete Prospectus | |
| 7. Ultra Vires | |
| 8. Doctrine of Indoor management | |
| 9. Extent of liability of members | |
| 10. Articles of Association |
Write a word or a term or a phrase which can substitute the following statement:
Primary document of a company which states aims and objectives of a company.
Write a word or a term or a phrase which can substitute the following statement:
Document which states the limits within which a company has to operate.
Write a word or a term or a phrase which can substitute the following statement:
Document issued by public company inviting public to subscribe to its shares.
Write a word or a term or a phrase which can substitute the following statement:
This prospectus does not contain information about the quantum of shares to be issued or the price at which shares will be issued.
State whether the following statement is True or False:
Memorandum establishes the relationship between the Company and Members.
State whether the following statement is True or False:
Only public companies can issue Prospectus.
Find the odd one.
Find the odd one.
Complete the sentence.
The documents which state the aims and objectives of a company is called as_________
Complete the sentence.
The document which is subordinate to the Memorandum of Association is called _________
Arrange in proper order.
a) Subscription clause.
b) Name clause.
c) Object clause.
Explain the following term/concept.
Name clause
Explain the following term/concept.
Capital clauses
Study the following case/situation and express your opinion:
The Articles of a company stated that while borrowing any money from outsiders. The document must have the signatures of the Managing Director (MD) and any one of the directors. The Articles of Association clearly stated the procedure to be followed while borrowing money. The Managing Director did not follow all the procedures but still borrowed money from Mr. X. Mr. X assumed that the MD has followed the required procedures:
(a) Can the MD be held punishable for his act?
(b) Under which Doctrine can Mr. X take action against the company?
(c) Explain the Doctrine.
Study the following case/situation and express your opinion:
A public limited company has issued all the shares mentioned in its Memorandum as Authorized Capital. Now the Company wants to make a public issue of 10,000 shares at face value of Rs 100 per share, to raise more funds for its expansion activities :
(a) Which clause of Memorandum needs to be altered?
(b) In which meeting the alteration can be approved?
(c) Which document should the company issue to invite the public to buy its shares?
Distinguish between the following:
Memorandum of association and articles of association.
Justify the following statement.
The doctrine of Indoor Management protects outsiders who are unaware of the correctness of internal proceedings of a company.
