Question

3._______ specifies the number of shares taken by each member.Required to answer. Single choice.
(1 Point)
Domicile Clause
Nomination Clause
Subscription Clause​

Answer 1

Answer:

Every Memorandum of Association (MOA) must contain the required mandatory clauses as per Companies Act, 2013. The purpose of this article is to explore the various clauses, i.e. the mandatory information, which is to be furnished in the MOA during company registration. The clauses are:

Name Clause: The name clause, the first of the MOA, protects the entity against future registrations of the same or closely identical name. A company should end with the word ‘limited’ in case of a public limited enterprise, and ‘private limited’ in the case of a private limited enterprise.

Registered Office Clause: The second clause of the MOA specifies the location of the company’s registered office. The clause will not exactly contain the address of the registered office, but the state or union territory in which the registered office of the company is located.

Objects Clause: The third clause of the MOA, the objects clause must state the objects of the company for which the company is proposed to be incorporated.

Liability Clause: The fourth clause of MOA, the liability clause declares the liability of members of the company to be either limited or unlimited. The MOA of the company limited by shares must declare that the liability of the members of the company is limited.

Capital Clause: The fifth clause of the MOA, the capital clause, states the company’s share capital. The clause must specify the total number of share capital with which the company must be registered, the number of shares of each kind and the face value of each share.

Subscription Clause: The sixth and final clause of the MOA, the subscription clause, should state the purpose of the subscribers to incorporate the company, agreeing to take the shares in the company based on the number written in the Memorandum.

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