Airfare Daily Deals eCigarettes Eyeglasses Hotels Jewelry Online Backup Online Dating Online Printing Online Tickets Skin Care Textbook Rentals Vitamins Web Hosting Weddings
Find coupons, reviews and similar sites for any retailer
SEARCH

Contents of the Memorandum of Association

Contents of the Memorandum of Association The Memorandum of Association contains the following clauses: (1) Name clause: The name of the proposed company is mentioned in this clause. The name of a company must end the word ‘Limited’ in the case of a public company and the words ‘Private Limited’ in the case of a private company. The name should not be identical with the name of any existing company. The name should not create an impression that the company is carrying on the business of some other existing company. The name should not be misleading.

Contents of the Memorandum of Association

The Memorandum of Association contains the following clauses:

(1) Name clause: The name of the proposed company is mentioned in this clause. The name of a company must end the word ‘Limited’ in the case of a public company and the words ‘Private Limited’ in the case of a private company. The name should not be identical with the name of any existing company. The name should not create an impression that the company is carrying on the business of some other existing company. The name should not be misleading.

(2) Registered office clause: The name of the ‘State’ in which the registered office of the company is to be situated is mentioned in this clause. This clause determines the jurisdiction of the Registrar of Companies and the court. This clause also ascertains the nationality of the company. The full address of the registered office must be communicated to the Registrar of Companies for future communication.

(3) Object clause: This clause states the object with which the company is proposed to be established. A company is not legally entitled to do any business other than that specified in its clause. The object clause should include:

(a) Main objects to be pursued after incorporation;

(b) Incidental objects ancillary to the attainment of the main objects;

(c) Other objects not included in (a) and (b) above.

The object clause must not include anything which is:

(a) Illegal or opposed to the public interest;

(b) Against the general law of the country; and

(c) Contradictory to the Companies Act itself.

(4) Liability clause: This clause states the nature of liability of the members of the company:

(a) In case of a company limited by shares, members’ liability is limited to the face value of the shares.

(b) In case of a company limited by guarantee, the liability clause must state the extent of liability of each individual member in the event of its being wound up.

(c) In case of an unlimited company, the liability clause does not appear in the memorandum of association.

(5) Capital clause: This clause states the total capital of the proposed company. The amount of capital as stated in the memorandum is known as the authorized capital of the company. A company cannot collect funds exceeding the authorized capital.

The division of capital into equity share capital and preference share capital should also be mentioned. The number of shares in each category and their value should be given in the memorandum.

Need an answer?
Get insightful answers from community-recommended
experts
in Business Etiquette on Knoji.
Would you recommend this author as an expert in Business Etiquette?
You have 0 recommendations remaining to grant today.
Comments (2)

Very well done article. Out of votes so promoted to help you. Thank you.

It is very easy to read rather than the book, important points of MOA is very short and noticed. Thank you

ARTICLE DETAILS
RELATED ARTICLES
ARTICLE KEYWORDS