What is the significance of the objects clause in the Memorandum of As

1.	What is the significance of the objects clause in the Memorandum of Association of a company?
Answer» The Objects clause is the most important clause of the company. It specifies the activities which a company can cany on and which activities it cannot carry on. The company cannot carry on any activity which is not authorised by its Memorandum of Association. This clause must be specified. • Main objects of the company to be pursued by the company on its incorporation • Objects incidental or ancillary to the attainment of the main objects • Other objects of the company not included in (i) and (ii) above. In case of the companies other than trading corporations whose objects are not confined to one state, the states to whose territories the objects of the company extend must be specified.

What is the significance of the objects clause in the Memorandum of Association of a company?

Answer»

The Objects clause is the most important clause of the company. It specifies the activities which a company can cany on and which activities it cannot carry on. The company cannot carry on any activity which is not authorised by its Memorandum of Association.

This clause must be specified.

• Main objects of the company to be pursued by the company on its incorporation

• Objects incidental or ancillary to the attainment of the main objects

• Other objects of the company not included in (i) and (ii) above.

In case of the companies other than trading corporations whose objects are not confined to one state, the states to whose territories the objects of the company extend must be specified.

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