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Question
Select the correct option from the given options:
| Group A | Group B |
| ___________ | Memorandum of association. |
Options
Articles of Association
Red Herring Prospectus
Primary document
details of liability of members
Advertisements
Solution
| Group A | Group B |
| Primary documents | Memorandum of association. |
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RELATED QUESTIONS
Select the correct answer from the option given below and rewrite the sentence.
Any act done by the company beyond the powers of Memorandum is called as _______.
Select the correct answer from the option given below and rewrite the sentence.
_________ clause states the amount of Authorised capital with which the company is registered.
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.
_______ is an incomplete prospectus.
Match the pairs:
| Group ‘A’ | Group ‘B’ |
| a) Capital clause | 1. Details of capital structure of a company |
| b) Liability clause | 2. Used for multiple issue of shares |
| c) Acts beyond the powers of Memorandum | 3. Abridged Prospectus |
| d) Red Herring Prospectus | 4. Describes main objectives |
| e) Shelf Prospectus | 5. Used for Rights Issue |
| 6. Incomplete Prospectus | |
| 7. Ultra Vires | |
| 8. Doctrine of Indoor management | |
| 9. Extent of liability of members | |
| 10. Articles of Association |
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 contains rules and regulations for internal management.
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:
It is an incomplete prospectus.
State whether the following statement is True or False:
Articles of Association can have provisions that contradict the Memorandum.
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:
Every company has to issue shelf prospectus every time it offers shares to the public.
Complete the sentence.
The document issued by a company to invite investors to buy its securities is called as _________
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.
Mr. A entered into a contract with Star Limited company and as advance payment gave a cheque of ₹ 1 lac to a Director Mr. Sam. Mr. Sam is not the Managing Director. Articles state that only the MD is authorized to sign any contracts or receive any payments on behalf of the company.
- Did Mr. Sam have the authority to accept the cheque? Why?
- Can Mr. Sam’s action be called as Ultra Vires? Why?
Distinguish between the following:
Memorandum of association and articles of association.
