Get premium membership and access questions with answers, video lessons as well as revision papers.

What is the importance of the Memorandum of Association.

      

What is the importance of the Memorandum of Association.

  

Answers


sharon
-It defines the limits of company associations.
-It informs subscribers the purpose for which their money will be put.
-It protects subscribers form possible misuse of their money
-It protects outside parties dealing with the company by informing them the extent of its
operation.
-Situation clause- This clause discloses the locations of the legislative office and it
contains the following elements.
-Where the company is situated
-Where the letters may be delivered
-Where sermons may be served.
-Liability clause – This clause states the status of the member’s liability with regard to the
debts of the company.
-The clause enables people who may enter into contract with the company to determine
the extent of the company’s liability.
-The statement of liability should clearly specify the members liability regard to the
company debts.
sharon kalunda answered the question on March 2, 2019 at 09:57


Next: Explain the rights and Obligations of Companies.
Previous: Describe how a named finned fish is adapted for swimming.

View More Introduction to Entrepreneurship Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions