Objects clause, Business Law and Ethics

Objects Clause:

Reasons for Stating Objects

 Section 5 (1) (c) requires the memorandum of association to state the objects of the company. The section does not however indicate why a company's objects have to be stated in the company's memorandum of association. In Cotman v Brougham (21) Lord Parker stated that the statement of a company's objects in its memorandum of association is intended to serve the following purposes:

(a)     To protect subscribers who learn from it the purpose to which their money can be applied.

(b)     To protect persons who deal with the company and who can infer from it the extent of the company's powers.

These propositions will become clearer after a study of the doctrine of ultra vires.

Posted Date: 1/12/2013 2:29:39 AM | Location : United States







Related Discussions:- Objects clause, Assignment Help, Ask Question on Objects clause, Get Answer, Expert's Help, Objects clause Discussions

Write discussion on Objects clause
Your posts are moderated
Related Questions
State Article 2 of Universal Declaration of Human Rights Article 2: 'Everyone is  entitled  to  the rights and freedoms set  forth in  this Declaration...' - This clause iden

Ratification - Law of Agency and Partnership However this is the adoption or confirmation through a person of a contract previously entered in through another.  Well

I am an international Law student. am taking International Financial Institutions I wrote a paper about the Europe Crisis I would like to find a lawyer or a tutor that can review a

Prospect of inflationary wage settlements The same logic can be applied to various supply side policies. Take, for example, the prospect of inflationary wage settlements. If w

Right to prior repayment: Therefore this was not variation of class rights since the existing preference shareholders had the same number of shares (and votes at a class meeti

Alien Tort Claims Act Problem: You work at a New York law firm and have been invited by the partner you work for to attend a meeting with Mrs. Esther Kiobel and a dozen

Define the Conceptual strength of stages model The stages model has a number of conceptual strengths. First, it emphasizes a process of policy making that cuts across and bridg

Both Sudan and the US are signatories to the "New York Convention."  A Sudanese company has won its case in a Sudanese arbitration panel.  The U.S. company has declined to pay this

Question 1: Define, distinguish and discuss the limits of each of the following mechanism of Alternative Dispute Resolution, namely; (a) Conciliation; and (b) Negotiation.

Liability of Retiring Partner Whether unless there is a special agreement for the contrary like a retiring partner can be held liable no more in respect of debts incurred prev