Question

Which document of a company is known as its charter? Explain its contents in detail.

Answer 1

Dear Student

Memorandum of Association is the document which is called constitutional of the company and is known as it's charter.
Memorandum of Association: It is the main document of the company. It defines the objectives of the company. It defines the limit's of company's activities. If enables outsiders to know the transactions which they can do with the company. A company cannot perform any activity which is not defined in the memorandum, if it do so, it will be ultra vires and void. It consists of following clauses:
Name Clause: It consists the name of the company.
Situation clause: It contains the address of the registered office of the company.
Object Clause: It states the object with which company is registered. Object clause is divided into main objects and other objects.
Liability clause: It states the liability of members.
Capital Clause: It states the total authorised capital with which company is registered.
Subscription or Association Clause: It contains the full name, address and occupation of subscribers to the memorandum.

Regards