What are clauses of memorandum of association?

Answer 1

Clauses of memorandum of association:

There are many clauses related to the memorandum of association. Some of them are as follows:

1-Name Clause:

According to this we have to state the name of the company. A company may adopt any name but it should not be identical to the name of an existing company registered with the registrar of the company.

2- Situation Clause:

As the name indicates it describes the different situations. This clause a company must have a registered office at which all the communications and notices are to be addressed. The memorandum will only state the name of the province where office is situated and not the address where office is situated.

3-Object Clause:

This is the most important clause in the memorandum. It clearly defines the sphere of the company's activities.

4-Liability Clause:

This clause of memorandum contains the declaration that the liability of the shareholders is limited to the extent of the value of shares held by them.

5-Capital Clause:

This clause is required to specify the amount of share capital with which the company proposes to be registered and secondly the divisions of that capital into shares of a fixed amount.

6-Subscription Clauses:

This clause contains a statement by the subscribers that they are eager of forming themselves into a company and agree to have a number of shares written against their respective names. Anonymous