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प्रश्न
Explain the following term/concept.
Liability clauses
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उत्तर
As per Section 13 (2) of the Companies Act, 1956, the liability clause of the Memorandum of Association of a company limited by shares states that the liability of its shareholders is limited to the face value of shares purchased by them. It means the shareholders are liable to pay the unpaid amount on their shares. In the initial stages, the company may make the liability of the Directors unlimited, if it is agreed by the Directors. This is to create confidence in the minds of the investors. An unlimited company does not have this clause in the Memorandum of Association. In the case of a company limited by guarantee, this clause states that the liability of its members is limited to the amount of the guarantee given by them. The amount payable by each member in the case of the winding-up of the company is mentioned in this clause.
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संबंधित प्रश्न
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 ________.
Write a word or a term or a phrase which can substitute the following statement:
Document which states the limits within which a company has to operate.
Write a word or a term or a phrase which can substitute the following statement:
Document which establishes company’s relationship with outsiders.
Write a word or a term or a phrase that can substitute the following statement:
The document is subordinate to the Memorandum of Association.
Write a word or a term or a phrase which can substitute the following statement:
Clause which describes the extent of liability of members.
Write a word or a term or a phrase which can substitute the following statement:
Last clause of Memorandum which contains name, signature, and other details of all the subscribers to the Memorandum.
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.
Write a word or a term or a phrase which can substitute the following statement:
This prospectus does not contain information about the quantum of shares to be issued or the price at which shares will be issued.
State whether the following statement is True or False:
Memorandum of Association and Articles of Association is prepared at the time of incorporation of a company.
State whether the following statement is True or False:
Any act done by the company beyond the powers of Memorandum is Ultra Vires.
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:
Actions can be taken against a company or its officers for misstatements in prospectus.
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 |
| Incomplete prospectus | ___________ |
Explain the following term/concept.
Name clause
Study the following case/situation and express your opinion:
A public limited company has issued all the shares mentioned in its Memorandum as Authorized Capital. Now the Company wants to make a public issue of 10,000 shares at face value of Rs 100 per share, to raise more funds for its expansion activities :
(a) Which clause of Memorandum needs to be altered?
(b) In which meeting the alteration can be approved?
(c) Which document should the company issue to invite the public to buy its shares?
