The object clause of a limited liability company is stated in the
Answer Details
The object clause of a limited liability company is stated in the Memorandum of Association. The Memorandum of Association is a legal document that outlines the company's purpose, objectives, and the activities it is authorized to carry out.
The object clause is a specific part of the Memorandum of Association that sets out the main objectives of the company. This clause defines the nature and scope of the business activities that the company is allowed to undertake.
For example, if a company's main objective is to provide IT services, the object clause in the Memorandum of Association will state that the company is authorized to provide IT services and related activities.
It is important to note that any business activities that fall outside of the scope of the object clause are considered ultra vires (beyond the powers) of the company and are not legally binding. Therefore, it is essential to ensure that the object clause is carefully drafted and accurately reflects the company's intended business activities.
Overall, the Memorandum of Association is a critical legal document for any limited liability company, and the object clause is a fundamental part of this document that outlines the company's main objectives and business activities.