Skip to content

CA Foundation · Business Laws · The Companies Act, 2013

Nisha is incorporating Spice Route Pvt Ltd, a company limited by shares. Which of the following must be stated in its Memorandum of Association?

The Memorandum must state the objects for which the company is incorporated, along with its name, registered office state, members' liability and share capital. Auditors' names, board meeting procedures and dividend policy are not memorandum contents and belong to the articles or other provisions.

  1. AThe objects for which the company is proposed to be incorporatedCorrect
  2. BThe names of the company's auditors
  3. CThe rules for conducting board meetings
  4. DThe dividend policy of the company

Explanation

The memorandum of a company limited by shares states the name, the registered office state, the objects, the liability of members and the capital clause. Auditors, board meeting procedures and dividend policy are internal matters dealt with in the articles or by other provisions.

Did you get it right without looking?

One question tells you little. A timed set on The Companies Act, 2013 shows your real accuracy, how long you take and where you lose marks.

Practise The Companies Act, 2013Free diagnostic mock

More The Companies Act, 2013 questions