Objects clause, Business Law and Ethics

Assignment Help:

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.


Related Discussions:- Objects clause

law enforcement agencies, Do a comprehensive outline and a research paper....

Do a comprehensive outline and a research paper. A well-organized and thoughtful 3-5 page Research Paper in APA format. The impact and use of technology in policing and the cour

Discuss the advantages of arbitration over litigation, QUESTION 1 Mr To...

QUESTION 1 Mr Tom, a businessman, has a commercial dispute with one of his clients. He has heard about Alternative Dispute Resolution and he believes that mediation, conciliati

Limited, Name to end with the word "Limited":                         ...

Name to end with the word "Limited":                             S.5(1)(a) provides that the word "limited" must be the last word of the name of a company which is to be limit

Money lent - effect of ultra vires transaction, Money Lent: According ...

Money Lent: According to the decision in Re: David Payne & Co Ltd (23), a person lending money to a company is not bound to enquire as to why the company requires the money. H

Corporate form based definition of phoenix activity, Q. Corporate form base...

Q. Corporate form based definition of phoenix activity? As phoenix activity entails the manipulation of the corporate form, it can be defined in these terms. A definition could

Indicator based definition of phoenix activity, Q. Indicator based definiti...

Q. Indicator based definition of phoenix activity? Many stakeholders emphasised the importance of educating the community about the signs or indicators of phoenix activity. A d

Personal property security act, You act for Fred who is the secured lending...

You act for Fred who is the secured lending manager of BigBank. He has a troublesome customer, Macs Tires Pty Ltd. This is a family run tire business with three directors. The prin

contrary case, a) Two family businesses are competing in the same industry...

a) Two family businesses are competing in the same industry, and have been bitter rivals since their early days.  The feud eventually extended into the personal lives of each famil

Plan the disciplinary interview, Question: You are the manager of a res...

Question: You are the manager of a restaurant and receive a letter from a customer complaining about the quality of service and the rudeness of one member of your staff. You ha

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd