Question
Write Short Notes on the following: Subscription Clause

Answer

Subscription Clause:
(1) This clause is also known as Incorporation clause, subscription clause or signature clause.
(2) In case of public company minimum seven and in case of private company minimum two members should have signed the Memorandum of Association.
(3) Such members should sign in presence of witnesses.
(4) These members who sign are known as “Signature Members”.
(5) The members of the company put their signatures and give an undertaking to the effect that they are interested in promoting the incorporation of a company and are willing purchase the shares mentioned against their names.
(6) The signateries name, address, profession etc. should be mentioned.
(7) When only one person incorporates the company, it is known as one person company.
(8) The members signing Memorandum of Association are known as signateries.

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