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

Open national bidding, QUESTION 1 (a) What are the conditions for use o...

QUESTION 1 (a) What are the conditions for use of the Request for Sealed Quotation method? (b) Explain the procedures to be followed for the preparation of a shortlist for t

Company management, COMPANY MANAGEMENT: A company, being an artificial...

COMPANY MANAGEMENT: A company, being an artificial person, cannot manage its own affairs. It is therefore not surprising to find that the articles of every registered company

Alien tort claims act, Alien Tort Claims Act Problem: You work ...

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 non-state actors, Define the non-state actors Besides the e...

Define the non-state actors Besides the efforts of ILC in defining a link between the state responsibility and non-state actors, some UNSC resolutions have tried to define the

Discuss the law relating to the rights and duties, QUESTION 1 Your moth...

QUESTION 1 Your mother makes delicious cakes and your wife suggests the idea of setting up a business to market these products. The cakes will be prepared by your mother and a

Evaluate nature of phoenix activity, Q. Evaluate nature of phoenix activity...

Q. Evaluate nature of phoenix activity? The literature on phoenix activity and the stakeholders consulted in this project emphasised that phoenix activity has evolved significa

Independent research into a particular aspect of law, The purpose of the as...

The purpose of the assignment is to allow you to undertake independent research into a particular aspect of law, to reflect on and consider particular legal issues and to apply you

The provisions of the law relating to a lost bill of exchang, QUESTION 1 ...

QUESTION 1 (a) By referring to the features documentary credits, explain how such an instrument can enhance and facilitate business activities (b) Discuss the applicability

Probabilistic operations research assignment help, Need help in a journal p...

Need help in a journal paper review. The following are the criteria: - Choose a journal paper in the general area of probabilistic operations research - recently published

Function of the court, Function of the Court: In Scottish Insurance Co...

Function of the Court: In Scottish Insurance Corporation Ltd v. Wilsons & Clyde Coal Co. Lord Simmons stated: "But important though its task is to see that the procedure by

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