Which of the following must be stated in the article of association?
Answer Details
The objects of the company must be stated in the articles of association. The objects clause defines the primary and ancillary objectives of the company and the activities it is authorized to carry out. This clause guides the directors and officers in the decision-making process by providing them with the company's scope of activities. It is also used to determine the company's capacity to enter into contracts, borrow money, and make investments. Other details such as the registered office address of the company, the method of issue and transfer of shares, and the statement that liabilities are limited are usually included in the articles of association but are not mandatory.