Question

State whether the following statement is True or False :
Authorized capital is mentioned in capital clause of Memorandum of Association.

Hint:

The {M}emorandum of {A}ssociation sets the {M}aximum {A}uthorized capital. The MoA defines the company's limits and boundaries.

Answer 1

The Memorandum of Association (MoA) is a foundational document of a company. Its "Capital Clause" specifies the maximum amount of share capital that the company is authorized to raise from the public. This is known as the authorized, registered, or nominal capital.