What Is The Most Important Clause Of A Company's Memorandum Of Association In Accordance With Pakistan Company Law?


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Mehreen Misbah answered
According to the Pakistan Company Law, the objects clause is the paramount element of the Memorandum of Association for any company. The founders and members of the company should always be certain while preparing the objects clause, which signifies the objectives of the company that is aimed to be started. It needs to be lucid, definite and precise in nature and should avoid unnecessary explanations and descriptions. The simple reason for the strong emphasis on the significance of the Memorandum of Association is the inability of a company to start a business legally that is not given authorization by its Memorandum of Association. The objectives clause is also important in the sense that the directors of a business cannot make any act of the company valid that goes beyond the elements of the objectives clause. The above mentioned factors clearly elucidate why the objective clause is the most important element of the Memorandum of Association.

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