Question

State with reasons whether the following statements are True or False:

Any clause of memorandum can be altered easily.

• A. True
• B. False

Answer 1

The correct option is B False

(i) The Memorandum of Association is the basic, primary and supreme document of the company.

(ii) It is to be filed with the Registrar of Company for the purpose of incorporation of company.

(iii) It is therefore called charter or constitution of the company.

(iv) The Memorandum of Association contain six clauses.

(v) For alteration of any dame in the Memorandum of Association, specific procedure is required to be followed as per the provision laid down in the Companies Act, 1956.

(vi) Such procedure of alteration is quite complicated and lengthy.

(vii) For alteration in Domicile and Object clause, a special resolution is passed at the general meeting and a sanction is obtained from the 'Company Law Board.'

(viii) For alteration of Liability clause a special resolution must be passed at the general meeting and a sanction for that is obtained from the court.

Thus, any clause of memorandum cannot be altered easily.