Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Formation of a Company

Question:

Which of the following documents is submitted to the Registrar of the Companies for getting the company registered?

Options:

Memorandum of Association

Articles of Association

Consent of Proposed Directors

All of these

Correct Answer:

All of these

Explanation:

The correct answer is option 4- All of these.

All of these documents are submitted to the Registrar of the Companies for getting the company registered.

  • Memorandum of Association: Memorandum of Association is the most important document as it defines the objectives of the company. No company can legally undertake activities that are not contained in its Memorandum of Association. As per section 2(56) of The Companies Act, 2013 “memorandum” means the memorandum of association of a company as originally framed or as altered from time to time in pursuance of any previous company law or of this Act. The Memorandum of Association contains different clauses.
  • Articles of Association: Articles of Association are the rules regarding internal management of a company. These rules are subsidiary to the Memorandum of Association and hence, should not contradict or exceed anything stated in the Memorandum of Association. According to section 2(5) of The Companies Act, 2013, ‘articles’ means the article of association of a company as originally framed or as altered from time to time or applied in pursuance of any previous company law or of this Act.
  • Consent of Proposed Directors: Apart from the Memorandum and Articles of Association, a written consent of each person named as a director is required confirming that they agree to act in that capacity and undertake to buy and pay for qualification shares, as mentioned in the Articles of Association.