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MEMORANDUM AND COMPANY FORMATION

Click to edit Master subtitle style PRESENTED BY:Pardeep Kumar MBA-704-2K11

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MEANING OF MEMORANDUM
The memorandum of association of a company, often simply called the memorandum (and then often capitalised as an abbreviation for the official name, which is a proper noun and usually includes other words), is the document that governs the relationship between the company and the outside. It is one of the documents required to incorporate a company in the United Kingdom, Ireland, India, Bangladesh, Pakistan and Sri Lanka, and is also used in many of the common law jurisdictions of the Commonwealth.
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PURPOSE OF MEMORANDUM
It serves two fold purpose , which are:

The intended shareholders shall know the field in which their money is going , and what risk they are undertaking for making investment.

The outsider dealing with the company shall know what the objectives of the company are and whether the contractual relation into which they are entering with the 8/4/12 company is within the objects of the

CONTENTS OF MEMORANDUM

Name clause Registered office clause Object clause Liability clause Capital clause

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IMPORTANCE OF MEMORANDUM

it contains the clauses that gives all the important information about the company It defines the relationship of outsiders with the company It is a fundamental document Unalterable document

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Y N A P M O O I C T A
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M R O F N

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MEANING OF COMPANY
the word company is derived from latin word companis is made up of two words com and panis . com means together and panis means bread . Originally the word company implied a group of persons who are together for lunch and dinner . A company in the normal sense means an association of persons united for a common purpose. It represents different kinds of associations both business and otherwise.
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CHARACTERISTICS OF COMPANY

Incorporated association An artificial person Separate legal entity Perpetual succession Common seal Limited liability Separate property Number of embers Capacity to sue

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FORMATION OF A COMPANY
A company is born only when it is duly incorporated . The formation of a company is a lengthy process , involving different stages.

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DIFFERENT STAGES

Promotion stage Incorporation or registration stage Capital subscription or floating stage Commencement of business

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PROMOTER
Promoter is the person who bring a company into existence . Promoters do all the initial spade work of preparing necessary documents , filing these with the registrar , paying necessary stamp duties and filling fees and getting the company incorporated . Then take active part in the formation of a company and incur all initial expenses.
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