Memorandum And Articles Chapter 2 Flashcards
What is the memorandum of association?
The memorandum of association is the constitution of a company which includes the Name, Place, Principal Line of Business, Liability, and Capital clauses.
What does the registration of a company entail?
The registration of a company is actually the registration of the memorandum.
What is included in the Name Clause?
The Name Clause contains the name of the company, including the words ‘Limited’, ‘(Private) Limited’, ‘(Guarantee) Limited’, ‘(Unlimited)’, or ‘(SMC. Private)’ as appropriate.
What does the Registered Office Clause state?
The Registered Office Clause states
•province (e.g sindh)
•part of Pakistan not forming part of a province (e.g Islamabad)
In which registered office of the company is to be situated.
What is stated in the Principal Line of Business Clause?
The Principal Line of Business Clause states the company’s principal line of business, which must match the name of the company and can engage in any business activity except those prohibited or restricted.
What does the Liability Clause specify?
The Liability Clause specifies the liabilities of members, indicating whether the liability is limited by shares, limited by guarantee, or unlimited.
What is included in the Authorized Capital Clause?
The Authorized Capital Clause states the maximum amount of share capital that can be issued and the division of authorized share capital into shares of fixed nominal value.
What does the Undertaking or Subscription Clause entail?
The Undertaking or Subscription Clause requires every subscriber to agree to take at least one share and includes an undertaking to form the company and comply with the clauses of the memorandum.
Clauses of memorandum?
6 classes of memorandum
1.name clause
2.registered office clause (or place clause)
3.principal line of business clause
4.liability clause
5.authorized capital clause( for companies limited by share or limited by guarantee having share capital
6.Undertaking or subscription clause
