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CA Foundation · Business Laws · The Companies Act, 2013

Sunita and Deepak are subscribers to the memorandum of Orbit Tech Pvt Ltd, a company to be formed. Which of the following clauses is NOT a mandatory clause of the memorandum of a company limited by shares?

Regulations for the internal management of the company are not part of the memorandum; they belong in the articles of association. The memorandum must contain the name, registered office, objects, liability and capital clauses, so internal management regulations are the item that is not mandatory in it.

  1. ARegulations for internal management of the companyCorrect
  2. BName clause
  3. CRegistered office clause
  4. DLiability clause

Explanation

The memorandum of a company limited by shares must contain the name clause, registered office clause, objects clause, liability clause and capital clause, along with the subscription details. The regulations for internal management are contained in the articles of association, not in the memorandum. Thus the first option is the one not found in the memorandum.

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