Tag: classification of commercial organisations

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Multiple choice organisation of commerce and management public sector undertakings & global enterprises departmental undertakings meaning and features of departmental undertaking government organisation classification of commercial organisations

Liability clause in MOA is required by __________________.

  1. Company Limited by shares

  2. Company Limited by guarantee

  3. Company Limited by both shares and guarantee

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Liability Clause. The fourth clause of MOA, the liability clause declares the liability of members of the company to be either limited or unlimited.However, in case of a limited company, the liability of directors or managers of a company may be unlimited, if specified in the memorandum.

Every alteration in the MOA will be made only in these clauses, either in all or any of these clauses. Therefore the situations under which the MOA needs to be altered are Change in the name of the Company. Change of registered office of the Company.

Multiple choice organisation of commerce and management public sector undertakings & global enterprises departmental undertakings meaning and features of departmental undertaking government organisation classification of commercial organisations

Which of the following statement is false?

  1. No legal formality is required to form a company

  2. The shareholders of a company have limited company

  3. A company can own property in its own name.

  4. A company is managed by the elected representatives of shareholders.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Formality also means the conditions which must be observed in making contracts, and the words which the law gives to be used in order to render them valid. It also signifies the conditions which the law requires to make regular proceedings.