Memorandum Of Association Part 2

Question 1

Liability clause
Authorized capital clause
Subscription clause
Borrowing power
Memorandum requirements

Answer 1

Here are the smart notes:

Liability Clause

• States liability of members
• Different types of companies have different liability clauses
  
  • Limited by shares: liability limited
  • Limited by guarantee: liability limited, with additional sentence
  • Unlimited: liability unlimited

Authorized Capital Clause

• Applies to companies with share capital
• States amount of share capital
• Specifies division of share capital into shares

Undertaking/Subscription Clause

• Company adds undertaking as specified by SECP
• Subscribers agree to abide by clauses
• Each subscriber writes name, address, and number of shares

Borrowing Powers

• Memorandum and articles imply power to obtain loans and credit
• Includes issuing securities not based on interest

Memorandum Requirements

• Printed, signed, and dated
• Divided into paragraphs with consecutive numbering
• Signed by subscribers with witness, including name, occupation, nationality, and address