question_answer

Explain the contents of Memorandum of Association.

Answer:

Ans.     Contents of Memorandum of Association: The memorandum must contain the following clauses:

1. The Name Clause: It contains the name of company with which the company will be known.

2. Registered Office Clause: It contains the name of the state, in which the registered office of the company is proposed to be situated.

3. Objects Clause: It defines the purpose for which the company is formed. It is further divided into two sub-clauses: (1) the main objects: (2) other objects.

4. Liability Clause: It states that the liability of members is limited to the amount unpaid on shares owned by them.

5. Capital Clause: It specifies the maximum capital, which the company will be authorized to raise through issue of shares.

6. Association Clause: In this clause, signatories to the memorandum, state their intention to be associated with the company and give their consent to purchase qualification shares.