To what extent and what methods may the various clauses in the memorandum of association of a company be altered
ANSWER
Company law prescribe the extent to which a company may alter the various clauses of the memorandum e.g.
i) A company may change its name to the extent that:
• It is not in the opinion of the registrar undesirable.
• It is not too similar to that of an existing company.
• It does not mislead the public.
• It does not suggest any patronage of the president government department or local authority.
• It does not suggest a criminal or immoral intent or purpose.
• It contains the word limited as the last word where liability is limited shares or guarantee.
• It does not contain the term “center” or “co-operative” or any abbreviation thereof.
• It does not contain the terms “bank”, “hotel” or “insurance” unless the company carries on such business.
ii) A company may change its objects clause so far as may be necessary to enable it:
• Carry on its business more economically or more efficiently.
• Attain its purpose new or improved means.
• Enlarge or change the local area of its operation.
• Sell or dispose of the whole or any part of its undertaking.
• Restrict or abandon any of the objects specified in the objects clause.
• Amalgamate with any other company or body of persons.
iii) A company may alter the capital clause of its memorandum to:
• Reduce its capital pursuant to the act.
• Increase its capital pursuant to the act.
• Convert shares to stock.
• Reconvert any stock to shares.
• Consolidate shares.
• Sub-divide shares.
• Diminish capital.