Memorandum of Association — SPCC STD 11 Commerce — Question

Object clause of Memorandum describes the objective for which company has been established and it also decides the area of work company can undertake. Company can not undertake any activity outside the purview of object clause. Due to object clause there is restriction on the powers of the outside the purview of object clause, it is considered as ultra vires and directors are personally liable for such acts.