Question

Match the following with reference clauses of Memorandum of Association (MOA) of company.

	List I		List II
P.	Second clause	1.	Capital
Q.	Fourth clause	2.	Subscription
R.	First clause	3.	Situation
S.	Third clause	4.	Name
T.	Sixth clause	5.	Liability
U.	Fifth clause	6.	Nature
		7.	Object
		8.	Profitability

Select the correct the answer front the options given below-

• A. P - 3, Q - 5, R - 4, S - 7, T - 2, U - 1
• B. P - 3, Q - 5, R - 4, S - 7, T - 8, U - 2
• C. P - 7, Q - 5, R - 4, S - 3, T - 2, U - 1
• D. P - 3, Q - 4, R - 5, S - 7, T - 1, U - 2

Answer 1

The correct option is A P - 3, Q - 5, R - 4, S - 7, T - 2, U - 1

According to the Companies Act, the Memorandum of Association of a company must contain the following clauses:

1. Name Clause of Memorandum of Association

The name of the company should be stated in this clause. A company is free to select any name it likes.

2. Situation Clause of Memorandum of Association

In this clause, the name of the State where the Company’s registered office is located should be mentioned.

3. Objects Clause of Memorandum of Association

This clause specifies the objects for which the company is formed. It is difficult to alter the objects clause later on.

4. Liability Clause of Memorandum of Association

This clause states the liability of the members of the company. The liability may be limited by shares or by guarantee.

5. Capital Clause of Memorandum of Association

This clause mentions the maximum amount of capital that can be raised by the company.

6. Subscription Clause of Memorandum of Association

It contains the names and addresses of the first subscribers. The subscribers to the Memorandum must take at least one share.