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Question
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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Solution
Memorandum 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.
_________ clause contains the details of liability of the members.
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Primary document of a company which states aims and objectives of a company.
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Document which contains, Name Clause, Registered Office Clause, Capital Clause, etc.
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Document which contains rules and regulations for internal management.
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Clause which describes the main activities a company can undertake.
State whether the following statement is True or False:
Memorandum establishes the relationship between the Company and Members.
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Any act done by the company beyond the powers of Memorandum is Ultra Vires.
State whether the following statement is True or False:
Articles of Association can have provisions that contradict the Memorandum.
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Memorandum need not have a Liability Clause.
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Articles of Association is subordinate to Memorandum.
State whether the following statement is True or False:
Memorandum contains rules and regulations for the internal management of a company.
State whether the following statement is True or False:
Red Herring prospectus does not contain details of the price at which shares will be sold by the company.
State whether the following statement is True or False:
Letter of offer is issued at the time of Rights Issue.
Explain the following term/concept.
Name clause
Explain the following term/concept.
objective clause
Explain the following term/concept.
Capital clauses
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?
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?
