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Saturday, 20 April 2013
Thursday, 11 April 2013
CLICK FOR VIDEO >>> MEMORANDUM OF ASSOCIATION
WHAT IS MEMORANDUM OF ASSOCIATION?
DEFINITION
[SEC 2(28)]
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Memorandum means “Memorandum of Association of a Company
as originally framed or altered from time to time in pursuance of any
previous Companies Law or of this Act”
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MEANING
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·
It is the charter of a
Company.
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It contains the objects for which the
Company is incorporated.
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It defines the possible scope of
operations of the Company.
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It defines the powers as well as
limitations on the powers of a Company.
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Any act which is beyond the powers given
by the Memorandum is ultra vires and
thus void.
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PURPOSE
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Memorandum contains the
fundamental conditions on which the whole foundation of the Company stands.
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It provides information to the third party
as to whether the contracts he is intending to enter into with the Company
are within the Company’s object clause or not.
·
It provides information to the intending
shareholder regarding the purposes for which his money is going to be used by
the Company and the amount of risk he is taking in making the investment.
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CONTENTS (Sec 13)
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Name clause
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Situation clause
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Object clause
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Liability clause
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Capital clause
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Subscription clause
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SECTION 15
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Sec 15 provides that the Memorandum shall be:
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Printed,
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Divided into paragraphs and numbered
consecutively,
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Stamped
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Signed by each subscriber, who shall add
his address, description and occupation, if any. The signature shall be made
in the presence of atleast one witness who shall attest the signatures.
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