What are the disadvantages of memorandum?
Table of Contents
What are the disadvantages of memorandum?
Disadvantages of memo
- Limited application: It is not widely used means of communication.
- Time consuming: It takes time to be sent to a distant branch or office.
- Expensive: As usually a memo is a per-printed form, it is expensive than other means.
- Lack of formality: It provides only informal communication.
What are the limitations of memorandum of association?
The memorandum cannot be altered by the company, except by fulfilling the conditions laid down in the Companies Act for specific activities and situations. It defines the scope of the company’s activity, and all acts beyond the scope are deemed to be ultra-vire (beyond powers).
What is MOA and its advantages?
The Memorandum of Association (MOA) defines the company’s relationship with its shareholders. It is the most important document of a company as it states the objectives of the company. It also contains the powers of the company within which it can act.
What are the purposes of memorandum of association?
A Memorandum of Association (MoA) represents the charter of the company. It is a legal document prepared during the formation and registration process of a company to define its relationship with shareholders and it specifies the objectives for which the company has been formed.
What are the disadvantages of letters?
The Disadvantages of Written Communication
- Impersonality. Written communication is less personal than oral communication, making it less ideal for emotional messages.
- Possibility of Miscommunication.
- Lack of Instantaneous Feedback.
- Cost, Materials and Storage.
- Liability.
How is Memorandum of Association altered?
A company can alter its memorandum by means of alteration in the following clause of Memorandum of Association:
- Name Clause.
- Object Clause.
- Capital Clause.
- Registered Office Clause.
- Liability Clause.
- Subscription Clause.
What are the legal effects of MOA?
they bind the company to the members, they bind members inter se i.e., bind each member to other members, but they do not bind either the company or the members to the outsiders.
What is the difference between MOA & AOA?
MOA is the prime document of the company. It is also called the charter of the company. AOA is the subsidiary document of the Company. AOA is the set of rules and regulations of the company to be adhered.
Which of the following clause of memorandum of association Cannot be altered?
the Liability Clause
Alteration to the Liability Clause: The Liability clause of the memorandum cannot be altered except with the written consent of all the members of the company. By altering the liability clause, the liability of the directors of the company can be made unlimited.