Write short notes on the following :
Contents of Memorandum of Association.
Contents of Memorandum of Association.
Contents of Memorandum of Association.(1) Name clause: The name of the proposed company is mentioned in this clause. The name of a company must end the word ‘Limited’ in the case of a public company and the words ‘Private Limited’ in the case of a private company. The name should not be identical with the name of any existing company. The name should not create an impression that the company is carrying on the business of some other existing company. The name should not be misleading.(2) Registered office clause: The name of the ‘State’ in which the registered office of the company is to be situated is mentioned in this clause. This clause determines the jurisdiction of the Registrar of Companies and the court. This clause also ascertains the nationality of the company. The full address of the registered office must be communicated to the Registrar of Companies for future communication.
(3) Object clause: This clause states the object with which the company is proposed to be established. A company is not legally entitled to do any business other than that specified in its clause.
(4) Liability clause: This clause states the nature of liability of the members of the company:
(a) In case of a company limited by shares, members’ liability is limited to the face value of the shares.
(b) In case of a company limited by guarantee, the liability clause must state the extent of liability of each individual member in the event of its being wound up.
(c) In case of an unlimited company, the liability clause does not appear in the memorandum of association.
(5) Capital clause: This clause states the total capital of the proposed company. The amount of capital as stated in the memorandum is known as the authorized capital of the company. A company cannot collect funds exceeding the authorized capital.
(2) Registered office clause: The name of the ‘State’ in which the registered office of the company is to be situated is mentioned in this clause. This clause determines the jurisdiction of the Registrar of Companies and the court. This clause also ascertains the nationality of the company. The full address of the registered office must be communicated to the Registrar of Companies for future communication.
(3) Object clause: This clause states the object with which the company is proposed to be established. A company is not legally entitled to do any business other than that specified in its clause.
(4) Liability clause: This clause states the nature of liability of the members of the company:
(a) In case of a company limited by shares, members’ liability is limited to the face value of the shares.
(b) In case of a company limited by guarantee, the liability clause must state the extent of liability of each individual member in the event of its being wound up.
(c) In case of an unlimited company, the liability clause does not appear in the memorandum of association.
(5) Capital clause: This clause states the total capital of the proposed company. The amount of capital as stated in the memorandum is known as the authorized capital of the company. A company cannot collect funds exceeding the authorized capital.
