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Every Company must have its own Memorandum of Association. It’s a basic document for the company’s very existence. The Association Memorandum lays out the creation of an organization with certain fundamental issues. The aim of the Association Memorandum is to provide guidance to investors, lenders, and others on a company’s permitted range of activities. When incorporating your company, it is necessary to take proper advice to form a proper memorandum of association to protect yourself and your business in the long run.
Contents of MOAName Clause: The Company’s name must be stated with the last word ‘ Limited ‘ for public companies and the last two words ‘ Private Limited ‘ for private firms. Situation Clause: The MOA must mention the State where the company’s registered office will be located. Object Clause: Any number of legal objects may be included in this object clause, whether or not the corporation is involved in all those activities. Liability clause: A limited company must state that its members ‘ liability is limited. This clause has a major impact on members. Without its written consent, a company can not increase the liability of a member Capital Clause: The company’s share capital MOA must show the amount of share capital with which the company will be registered and its division into fixed-value shares. Association and Subscription Clause: An association clause that refers to desire of subscribers to become a corporate body should be attached at the foot of the Memorandum in all cases.The subscription clause states that each subscriber must take at least one share in the company and must state the number of shares he and his signature have taken.
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