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प्रश्न
Explain the following term/concept.
objective clause
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उत्तर
According to Section 13 (1) (d) of the Companies Act, 1956, the objects clause of the Memorandum of Association states the objects and purposes of the company for which it is formed. It lays down the boundaries for the operations and the powers of the company. The shareholders also come to know as to how and where their investment is employed.
The objects are classified as (1) the main objects (2) incidental objects and (3) other objects. Under the ‘main objects’, the main objects to be pursued by the company on its incorporation are stated. In ‘incidental objects’, the secondary Objects to be achieved along with the attainment of the main objects are stated. Under the ‘other objects’, any other objects, not stated under ‘main objects’ and ‘incidental objects’ are stated.
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संबंधित प्रश्न
Select the correct answer from the option given below and rewrite the sentence.
_______is a primary document of the company which contains the aims and objectives of the company.
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.
_________ clause contains the details of liability of the members.
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 contains rules and regulations for internal management.
Write a word or a term or a phrase which can substitute the following statement:
Clause which gives details of authorized capital or Registered Capital.
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:
It is an incomplete prospectus.
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 contains rules and regulations for the internal management of a company.
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:
Red Herring prospectus does not contain details of the price at which shares will be sold by the company.
Find the odd one.
Explain the following term/concept.
Name clause
Explain the following term/concept.
Liability clauses
Study the following case/situation and express your opinion:
The Articles of a company stated that while borrowing any money from outsiders. The document must have the signatures of the Managing Director (MD) and any one of the directors. The Articles of Association clearly stated the procedure to be followed while borrowing money. The Managing Director did not follow all the procedures but still borrowed money from Mr. X. Mr. X assumed that the MD has followed the required procedures:
(a) Can the MD be held punishable for his act?
(b) Under which Doctrine can Mr. X take action against the company?
(c) Explain the Doctrine.
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?
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?
Study the following case/situation and express your opinion:
A company stated in its prospectus that it has been making profits since the last 5 years. However, Mr. X. an investor found out that two years back the company had not made any profit. The prospectus was filed with the ROC on 1 st Jan 2017 and was issued to the public on 10th Feb 2018.
a) Can Mr. X state that there was a misstatement in the prospectus?
b) If found guilty which two types of liability will the company and its officers face?
c) Can the prospectus be valid for issue to the public on 10th Feb 2018?
