English

State whether the following statement is True or False: Memorandum establishes relationship between Company and Members.

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Question

State whether the following statement is True or False:

Memorandum establishes the relationship between the Company and Members.

Options

  • True

  • False

MCQ
True or False
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Solution

False

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Documents Related to Formation of a Company
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Chapter 4: Documents related to formation of a company - Exercise Q.1 [Page 63]

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Balbharati Secretarial Practice [English] Standard 11 Maharashtra State Board
Chapter 4 Documents related to formation of a company
Exercise Q.1 | Q 4.03 | Page 63

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 _______.


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Prospectus attached with every share application form.


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Any act done by the company which goes beyond the powers of Memorandum of Association will be calledas _________


Complete the sentence.

The document which is subordinate to the Memorandum of Association is called _________


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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
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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 :
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Justify the following statement.

The doctrine of Indoor Management protects outsiders who are unaware of the correctness of internal proceedings of a company.


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