Question

State the following statement is True or False:

The clause of Memorandum that fixes the area of activities of the company is object clause.

• A. True
• B. False

Answer 1

The correct option is A True

True

The objective clause requires you to summarize the main objectives for establishing the company with reference to the requirements for shareholding and use of financial resources. You also need to state ancillary objectives; that is, 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.