Principle: The Memorandum of Association (MoA) of a Company shall have the following clauses: (a) Name,…
The memorandum needs the company’s name and registered-office state, its furniture-selling object, its capital, and the members’ limited liability and share subscriptions.…
Choose your answer
Principle: The Memorandum of Association (MoA) of a Company shall have the following clauses:
(a) Name,
(b) State in which the registered office is situated
(c) Objects,
(d) Liability of each member-Limited or Unlimited,
(e) Capital, and
(f) Subscription-how many shares of the Company has been subscribed to by each member.
Facts: Mr. Winston, along with his 5 sons, has recently incorporated a Private Limited Company. Details regarding the Company are as follows:
i) The name of the Company is 'Winston & Sons Private Limited' and the Registered office of the Company is situated in Maharashtra.
ii) The Company has 3 directors in the Board of Directors.
iii) Mr. Winston shall always have the right to nominate 1/3rd of the directors of the Board
iv) The object of the Company is 'selling good quality furniture'
v) The Capital of the Company is Rs.60 lakhs
vi) The Company shall pay an interim and a final dividend each year
vii) For borrowing amounts of more than Rs 10 lakhs, the Director shall seek the prior consent of Mr. Winston and his sons by special resolution.
viii) The liability of each member is limited. Mr. Winston and each of his sons are a member of the Company, and have subscribed to 1000 shares each.
Mr. Winston wants to know which of the above-mentioned information has to be specified in the MoA. Answer from the given choices.
Answer and explanation
Correct answer C
The memorandum needs the company’s name and registered-office state, its furniture-selling object, its capital, and the members’ limited liability and share subscriptions. These are supplied by the first, fourth, fifth and eighth items. The other details regulate management, dividends or borrowing rather than the memorandum clauses listed in the principle.
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