Showing posts from January, 2017

Alteration of memorandum of association

Alteration of memorandum of association of a corporation under company lawLegal procedure for alteration of existing memorandum of association:
1. STEPS REQUIRED FOR ALTERATION OF MEMORANDUM: The following steps are involved in the alteration of memorandum:  1. Preliminary discussion at broad meetings and company’s advisers to determine the best course to adopt and the precise nature of the desired alteration. 2. Where company’s shares are quoted on a stock exchange, ensure that the requirements of the exchange are fully and well understood and complied with. 3. Prior consultation with some of the large shareholders, creditors and the debenture-holders to ensure, so far as possible, that the proposed change will be adopted. 4. Can any matter be settled beforehand with the registrar, e.g whether a new name will meet with his approval.

Memorandum of association of a company

Memorandum of association of a company in Corporate law
1. INTRODUCTION And importance of memorandum of association:The memorandum of association is the most important document as it forms the charter of the company and is so to say, the statutory deed of partnership. It contains the fundamental conditions upon which alone the company is granted incorporation. Its purpose is to enable shareholders, creditors, and those who deal with the company to know what is its permitted range of enterprise. It informs all persons what the company is formed to do and what capital it has to do with. This document regulates the company’s external affairs. Sections 16,17 and 18 lays down the contents of a memorandum of association.   2. DEFINITIONS: Some definitions are as follows:  (1) Lord Cairns: The memorandum of association of the Company is its charter and defines the limitations of the powers of the company established under the Ordinance. (2) Lord Mcmillan: The purpose of memorandum is to enable t…