Question

Describe liability clause in memorandum of association

Answer 1

LIABILITY CLAUSE--- It is the main clause in the Momrandom of association of business. In this clause company mentions the liability of every person working in the business. If there is company form of business then this clause shows that every shareholder has to paid only limited shares i e. only liable to paid unpaid shares... In other side, if there is partnership firm of business., all partners have unlimited liability WHICH means partners are liable to give asset to company whenever assets of the company is unable to complete the liabilities...


In this way,, liability clause, shows many things of the business about liability And it plays vary main role in MOA...

Answer 2

Answer:

Liability clause mentions the liability of members of the company- In case of a company limited by shares, Memorandum of Association must have a clause to the effect that the liability of the members is limited to the extent of the amount of the unpaid portion of the shares held by him.