Multiple choice

Under the capital clause of the Memorandum of Association of the company, it is must to state

  1. the division of share capital into shares of fixed amount

  2. the division of the authorised capital into different classes of shares

  3. the rights of various classes of shares

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Authorised Capital, i.e maximum amount a company can raise in its lifetime is to be mentioned in the Capital Clause of the Memorandum of Association.

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