Question

State the following statement is True or False:

Object clause of Memorandum of Association states aims and objects of a company.

• A. True
• B. False

Answer 1

The correct option is A True

True

The objective clause requires the company to summarize the main objectives for establishing the company with reference to the requirements for shareholding and use of financial resources. It also needs to state ancillary objectives, those objectives that are required to facilitate the achievement of the main objectives. The objectives should be free of any provisions or declarations that contravene laws or public good.