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What is the importance of the Memorandum of Association.

What is the importance of the Memorandum of Association.

Answers

sharon
-It defines the limits of company associations.
-It informs subscribers the purpose for which their money will be put.
-It protects subscribers form possible misuse of their money
-It protects outside parties dealing with the company by informing them the extent of its
operation.
-Situation clause- This clause discloses the locations of the legislative office and it
contains the following elements.
-Where the company is situated
-Where the letters may be delivered
-Where sermons may be served.
-Liability clause – This clause states the status of the member’s liability with regard to the
debts of the company.
-The clause enables people who may enter into contract with the company to determine
the extent of the company’s liability.
-The statement of liability should clearly specify the members liability regard to the
company debts.
sharon kalunda answered the question on March 2, 2019 at 09:57

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