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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.
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:
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:
Document which establishes relationship between a company and its members.
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:
Memorandum establishes the relationship between the Company and Members.
State whether the following statement is True or False:
Entrenched Articles cannot be easily altered.
State whether the following statement is True or False:
Only public companies can issue Prospectus.
State whether the following statement is True or False:
Actions can be taken against a company or its officers for misstatements in prospectus.
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_________
Select the correct option from the given options:
| Group A | Group B |
| Liability clause | ___________ |
Select the correct option from the given options:
| Group A | Group B |
| Incomplete prospectus | ___________ |
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?
