myz-vgb.ru A Business Encyclopedia

Memorandum of Association

Definition: The Memorandum of Association or MOA is the legal document that has to be filed with the registrar of companies at the time of incorporation of the company. It is often called as a memorandum and is comprised of fundamental conditions on the basis of which a company operates.

The memorandum of association is the most important document that needs to be formulated with utmost care. It is the document that governs the relationship between the company and the outside. Memorandum of Association serves as the constitution of the company that defines all the rules and regulations that must be complied by every company. It is mandatory for every company that wants to get registered as a private/public limited to prepare the memorandum of association.

Once the document is prepared the company cannot perform anything beyond the limit as mentioned in the memorandum of association. Thus, this is considered as a supreme document and comprises of following important clauses:

  1. Name Clause: The name of the company that must end with the term “limited”. Also, it must be ensured that the name selected for the company should not resemble with the name of any existing company.
  2. Registered Office Clause: This clause requires to mention the registered office address of the company.
  3. Objective Clause: The objective clause requires to mention clearly the objective behind the incorporation of the company, i.e. the purpose for which the company is being established.
  4. Liability Clause: This clause requires to mention the extent to which the shareholders are liable to pay off the debt obligations in the event of the dissolution of the company.
  5. Capital Clause: Company’s authorized capital along with the nominal value of all kinds of shares need to be disclosed here. Also, the company is required to state the list of its assets over here.
  6. Association Clause: As per this clause, the willingness of shareholders is required with respect to their association with the company. For a public limited company minimum, seven members are required to sign the memorandum, whereas in a case of a private limited company minimum two members are required to do the same.

Note: This document is required to be published and presented to the shareholders, creditors and others associated with the company so that everybody knows the lines on which a company shall operate.

Leave a Reply

Your email address will not be published. Required fields are marked *

Shares

Related pages


marketing auditspotential entrants definitionaccelerator definition economicsporters five forcesporter's five forces frameworkmeaning of sbuassets turnover ratio analysisinvestment turnover ratio interpretationpress agentry in public relationsmeaning of dialecticdefine dialeticautocracy definee-tailing definitionelastic definition economicsforesight resourcing solutionsexample of imputed coststages in the job analysis processid ego superego examplesproportionate sampling techniquecommercial innovation definitionbureaucracy simple definitionoligopolistic market characteristicsdefinition of recruitment and selection in hrmdefine regiofeatures of monopolistic marketjargon meaning in hindirensiscamels ratingwhat is total utility in economics7cs communicationjob evaluation templateswage fund theory was propounded byfactors affecting marketing mixivan pavlov's theoryinternal factors affecting marketing environmentdivestment meaningsfa systemmeaning of attitude scaleclassical bureaucracydefinition divestedethnocentrism in international businessabc method of inventorysocial loafing definewhat is convenience sampling methodvirtue ethics workplace exampledematerialized accountordinal theory of consumer behaviorwhy is consumer behavior important to marketersemployee provident fund indiaoligopoly pricing strategydefine spearinducted definition14 general principles of management given by fayolsampling distribution definitionpiece rate payment systemvariate definitionhow do you prepare a cash budgetmarginal rate of substitution indifference curveindeference curvestrategic intent wikipediamanagement according to henri fayolmodigliani and miller theory on dividend policythe definition of classical conditioningpersonality theoristsinformal groups in organizationsarbitrage definelaw of increasing marginal utilitystrata defscales meaning in hinditypes of income elasticity of demanddenotative definition exampledemand-pull inflation occurs whenkisan vikasdefinition of industrial goodsdisguised employmentreorder definitionmotivation theory pptmeaning of hedging in forexbasic salary for pfrbi meaningdefinition of forward integrationderived demand and autonomous demand