English

State whether the following statement is True or False: Memorandum of Association describes the nature and character of the company.

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Question

State whether the following statement is True or False:

Memorandum of Association describes the nature and character of the 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 4.02 | Page 63

RELATED QUESTIONS

Select the correct answer from the option given below and rewrite the sentence.

_________ acts are void or legally ineffective.


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 establishes company’s relationship with outsiders.


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Document which contains rules and regulations for internal management.


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Clause which describes the extent of liability of members.


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

Prospectus attached with every share application form.


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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 establishes the relationship between the Company and Members.


State whether the following statement is True or False:

Actions can be taken against a company or its officers for misstatements in prospectus.


Find the odd one.


Find the odd one.


Find the odd one.


Complete the sentence.

The documents which state the aims and objectives of a company is called as_________


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The document issued by a company to invite investors to buy its securities is called as _________


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___________ Memorandum of association.

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objective clause


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:
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(b) Under which Doctrine can Mr. X take action against the company?
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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.

  1. Did Mr. Sam have the authority to accept the cheque? Why?
  2. Can Mr. Sam’s action be called as Ultra Vires? Why?

Distinguish between the following:
Memorandum of association and articles of association.


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