Saturday, September 27, 2014

Provision Applicable for Drafting Memorandum for Company Registration:

Section 4 of the Companies Act 2013 guides the procedure for drafting Memorandum and laid down various provision for proper drafting of memorandum of association which are as follows:-
The memorandum of a company whether public or private shall contain:-

  1. The name of the Proposed company end with the word “Limited” in the case of a public limited company or end with the words “Private Limited” in the case of a private limited company Provided that this provision is not applicable for the purpose of Section 8 Company Registration
  2. MOA must contain name of the State in which the registered office of the proposed company will be situated
  3. MOA must state the objects of the proposed company whether main object or ancillary object and any matter considered necessary in furtherance of main object
  4. The liability of members must be mentioned in the MOA of the proposed Company whether limited Liability or unlimited and also state as follows
  • For company limited by shares liability of members of the company is limited to the amount unpaid if any on the amount of shares held by them and
  • For company limited by guarantee the liability of the member of the company limited by amount up to which each member undertakes assets or other form of assets.

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