What is councilor memorandum? State its content and explain the method of changing its objective sentence.
Meaning and definitions of councilor memorandum
Councilor’s memorandum is the first important statutory document that is presented to the Registrar of Companies at the time of amalgamation. The councilor memorandum is the cornerstone of the company, as the birth and existence of the company is based on it. Its purpose is to tell the company’s members, creditors and individuals the extent of the company’s scope of work. In this, the name of the company, head office, amount of capital, extent of liability as well as the objectives, rights and scope of work of the company are discussed. This company cannot do any work of any kind outside the rights given herein.
(1) As per section 2 (56) of the Companies Act, 2013, “Memorandum of Association shall mean a Memorandum of Association of the Company which is or has from time to time been made under any previous Companies Legislation or this Act. has been converted to. ”
(2) According to Lord Selborne, “The Councilor Memorandum is an important and irrevocable (except in certain circumstances) legislation of the companies. The amalgamation of companies is to be done only for the purposes not mentioned in the councilor memorandum. ”
* (3) According to Judge Charles Worth, “The councilor memorandum is the charter of the company, which defines its rights and limits.”
(4) According to Lord Macmillan, “The object of the Councilor’s memorandum is to enable the shareholders, creditors and all persons who deal with the company to know what the whole program of the company is per se.” (5) Lord Cairnscras’s “Councillord Memorandum is the charter of a company and it shall be paid
defines the limits of rights of a company established under the Act. It is thus clear that “The Councilor Memorandum is an important, basic and irrevocable document of the Company which defines the objectives of the Company and sets out the limits of its scope and powers from punishment. “