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Object clause

Prem Munjal (Training) (75 Points)

10 January 2013

Whether to amalgamate with another companies, either belongs to same industry or other industry, is categorised as a power / object of the company ?

if said corporate startegy categorised as power of the company then why we state it in co's memorandum i.e. why we not in articles of compny ?

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2 Replies

Tanveer Md Masood (Indispensable) (361 Points)
Replied 10 January 2013

Dear Prem Munjal,

You need to understand the difference between artcies of association and Memorandum association of a company wherein the former is the basisi by that gverns the daily and regular affairs and business transactions. while the latter that is the memrandum of Association is the constitution of the company wherein all sets of principles and plocies of the company has been laid down. The strategies to be followed is often governmed by the moa of the company.

Amalgamting is ne such strategy that takes in due course of the business trnaction after taking into account hows the business doing whether it would be prudent enough to merge or amalgamate- the benefits that would be derived and so on.

Regards

Tanveer Mohammad Masood