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प्रश्न
Distinguish between the following:
Memorandum of association and articles of association.
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उत्तर
Sr. No. |
Memorandum of association |
articles of association : |
|
1 |
Memorandum of Association is the primary, fundamental, and the main document of the company which lays down its constitution and defines its objects and the scope of its activities. |
The Articles of Association is a secondary, subsidiary, and subordinate document of the company which lays down the rules and regulations for the internal management of the company. |
|
2 |
It is the basic, fundamental, primary, and supreme document of the company. It is a life-giving document. |
It is a secondary and subordinate document. It is subordinate to the Memorandum of Association. |
|
3 |
It defines the sc0pe of the activities of the company, its objects, and their limits or the area beyond Which the activities of the company cannot go. It fixes the area of its operation. |
It lays down the rules for carrying out the objects of the company. The rules are meant for the internal management of the company within the area defined by the Memorandum. |
|
4 |
It defines the relationship of the company with the outsiders, e.g. buyers, sellers, creditors, debtors, etc. |
It defines the relationship between the company and members and also between members. It has nothing to do with the outsiders. |
|
5 |
Every company irrespective of its types, nature and size must prepare and file its own memorandum. No company under the Companies Act can be registered Without the Memorandum of Association. |
Every company must prepare and file its own articles. However, a public company may adopt table A of the Companies Act, 1956, as its articles. |
|
6 |
The procedure for the amendment or alteration Is very difficult. It requires an ordinary or special resolution, sanction by the Central Government or the Company Law Board or the Court. |
The procedure for alteration is relatively simple. The Articles can be altered subject to the Companies Act and general law provided the alterations are intra Vires the Memorandum and they are in the interest of the company as a whole. |
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संबंधित प्रश्न
Select the correct answer from the option given below and rewrite the sentence.
The ______ Clause describes the range of activities a company can undertake
Select the correct answer from the option given below and rewrite the sentence.
_________ contains rules and regulations for internal management of the company
Select the correct answer from the option given below and rewrite the sentence.
Articles establishes relationship between company and ________.
Select the correct answer from the option given below and rewrite the sentence.
For making multiple issues of shares within a year, a company can prepare a ________ Prospectus.
Select the correct answer from the option given below and rewrite the sentence.
_______ is an incomplete prospectus.
Write a word or a term or a phrase which can substitute the following statement:
Primary document of a company which states aims and objectives of a company.
Write a word or a term or a phrase which can substitute the following statement:
Term used for acts beyond the scope of Memorandum of Association.
Write a word or a term or a phrase which can substitute the following statement:
Document which establishes relationship between a company and its members.
State whether the following statement is True or False:
Memorandum of Association describes the nature and character of the company.
State whether the following statement is True or False:
Memorandum establishes the relationship between the Company and Members.
State whether the following statement is True or False:
Memorandum need not have a Liability Clause.
State whether the following statement is True or False:
Every subscriber who signs the Memorandum must also sign the Articles.
State whether the following statement is True or False:
Letter of offer is issued at the time of Rights Issue.
Find the odd one.
Complete the sentence.
The documents which state the aims and objectives of a company is called as_________
Complete the sentence.
Any act done by the company which goes beyond the powers of Memorandum of Association will be calledas _________
Complete the sentence.
The document which contains the rules and regulations governing the internal management of a company is called _________
Select the correct option from the given options:
| Group A | Group B |
| ___________ | Memorandum of association. |
Select the correct option from the given options:
| Group A | Group B |
| ___________ | Establishes relation between company and its member |
Study the following case/situation and express your opinion:
The object clause of Memorandum of a company stated the main object as the manufacturing of plastic chairs and tables and any other activity in furtherance of achievement of its main activity. The Board of Directors wants to now also produce TV. Serials and feels that the shareholders may give their permission.
a) Can the company with immediate effect start producing TV? Serials? Why?
b) How can the object clause of the company be altered?
