English

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.

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Question

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.

Options

  • True

  • False

MCQ
True or False
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Solution

True

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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 4.01 | 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 _______.


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.


Write a word or a term or a phrase which can substitute the following statement:

Document which contains, Name Clause, Registered Office Clause, Capital Clause, etc.


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 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:

Prospectus attached with every share application form.


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:

Articles of Association is subordinate to Memorandum.


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:

Prospectus must be issued within 1 year from the date of tiling it with the ROC.


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.

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


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:

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.


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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