importance of the-registered , the memorandum, Incorporation and objears

The importance of the-registered erp office is that it is the address cf i_ company where all cormnuulicabons and notices are to be sent and where register of nernbers, register of debenhureholders, register of charges. mmmes books of general meetings, etc., are kept
3. The objects clause. It is the must important clause of the memorandum because it sets out the objects or vitas of the compam-A compamy is not legally entitled to do any business other than that specified in Its objects clause. This rule is meant to protectflrst, the members who can at once know the purpose Fir which their money is to be employed and can bsure that their money is not going to be risked in an unknown acth.it of project and secondly, the public at large, wllo deal with the company can at once know theextent of company's powers and Be her a panic ansacbon which is to be entered into with them is ultra cues the company or not Moreover, the fact that Uje cgmpa capital camiot be spent on any project - outside the objects clause of the company gives a feeling of security to the creditors.
Although the subscribers to the memorandum are fine to choose the objects of the proposed company, the following points should be kept in mind while draping the objects clause of a company: (i) The objects of the t ompauly must not be illegal, e.g., to car y on the business of lottery.
(ii) They must not be against the provisions of the Compames Act, such as buying its own shares (Sec. 77), declarjn dividend out of capital etc.
(iii They must not be against public policy, e.g. to carry on trade pith an enemy country.
(iv) Theymust be stated ale u i, and definitely An ambiguous statement like "company maytake up any work which it deems prof tabled is meaningless.
(v) They must be quite elaborate also. Not only the main objects but the subsidiary or incidental objects too should be stated because it is v,ery difficult to alter them. The narrower the objects expressed in the memorandum, the less is the subscribe F's risk but the wider snc objects thegre,ateristhesecmity of those who tear sect business with the company it is, therefore, of most importance that the objects clause be drafted with the greatest care
Alter the passing of the Compames (Amendjnent) Act, 1965, the objects clause of a company must be divided into two sub-clauses
(A The Haiti objects. Under this sub clause the snafu objects to be pusued by the company on its Incorporation and objears rcciden at or. _ullarv to the attainment of the main objects mast be spit
ihCORPOtT Ok'. CF A CC,.
ib ) Other objects. L'nder this sab-clause obje Is c f lice Tom; .. Cot include.i m the above clause must be stated [Sec. 13 ( 1) i d)].
In the case of non-trading companies' the objects clause should a SG mention the names of those States to w IO'C territories the objects of a co npamy will extend.