the join stock company cannot be formed without...A) article of association B) prospectus C) Memorandum of association
Answers
For a company to be recognized as a separate legal entity and for it to come into existence, it has to be incorporated. Not registering a joint stock company is not an option. Without incorporation, a company simply does not exist.
Answer:
Memorandum of association
Explanation:
The joint stock company cannot be formed without a Memorandum of the association because it is one of the important documents required in the formation of the company.
- A Memorandum of association is the principal record of a company.
- It is also called the Charter document of the concern.
- It contains the strengths/powers and objectives of the company.
- It also describes the extent/ scope and operations of the company.
- Acts done beyond MOA is Void.
- It can only be altered according to the provisions of the Companies Act, 2013.
- The Memorandum of association contains the following clauses:
1. Name clause
It contains the complete name of the company. The public company name should end with "Ltd" and the private company name should end with "Pvt Ltd."
2. Domicile clause
It contains the name of the state in which the registered office of the company is to be situated.
3. Capital clause
It contains a specific amount of authorized share capital.
4. Object clause
It is the most important clause of MOA, it contains the main object of the company and secondary objectives.
5. Liability clause
It defines the liability of members of the company whether unlimited or limited liability.
6. Subscription clause
It contains the declaration given and signed by the directors.
Therefore, the joint stock company cannot be formed without the principal document of the company.
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