Discuss the sub sections of memorandum of association.

      

Discuss the sub sections of memorandum of association.

  

Answers


Simon
• Name clause. The name of a company must be indicated in the memorandum of association and should end with the word limited (ltd) this is to indicate that the liability of the company is limited.
• The objective clause. This clause indicates the set of activities that the company should engage in. the company should engage in only these activities but not other activities.
• Situation clause. This clause states that every company must have a registered office where official notices and communication can be received and sent.
• Liability clause. This clause warns the customers that the liabilities of a certain company are limited
• Capital clause tis clause states that the amount of capital which the business can raise and the division of this capital into units of equal value.
• Declaration clause. This is a declaration signed by the promoters stating that they wish to form the company and undertake to buy shares in the proposed firm.

skilled writter answered the question on May 15, 2018 at 05:47


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