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Question
Complete the sentence.
The document which is subordinate to the Memorandum of Association is called _________
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Solution
The document which is subordinate to the Memorandum of Association is called Article of association.
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RELATED QUESTIONS
______ describes the relationship between company and outsiders.
Select the correct answer from the option given below and rewrite the sentence.
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The document issued by a company to invite investors to buy its securities is called as _________
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| Group A | Group B |
| Incomplete prospectus | ___________ |
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| ___________ | Establishes relation between company and its member |
Explain the following term/concept.
Name clause
Explain the following term/concept.
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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:
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?
Distinguish between the following:
Memorandum of association and articles of association.
