Question

State the following statement is True or False:

The sphere of activities and the business of a company is stated in the object clause.

• A. True
• B. False

Answer 1

The correct option is A True

As per Section 4 of the Companies Act, 2013, Every Company has to frame its Memorandum of Association i.e also knowns as the charter of the Company, in which there is certain clause named as Name Clause, Situation clause, object clause, etc as the name suggests, all the objects, activities and business for which the company is incorporated is stated in the object clause of the Memorandum of Association. The main clause gives a brief about the main activities that will be carried out by the Company like trading, manufacturing, etc and the sub-clause describes the activities incidental to the main clause.

Thus the Correct Answer is A.