Question

Under the Capital Clause of the Memorandum of Association of the Company, it is must to state ________________________.

• A. The division of share capital into shares of fixed amount.
• B. The division of the authorized capital into different classes of shares.
• C. The rights of various classes of shareholders
• D. None of these

Answer 1

Answer: (A)

The division of share capital into shares of fixed amount.

An important step in the formation of a company is to prepare a document the company to be pursued by the company on its incorporation and objects company, the memorandum shall also state the amount of share capital with which the company is to be registered and the division thereof into shares of a fixed amount.