A memorandum of association is a legal document that serves as a foundational charter for a company or organization. It is a key component of the incorporation process, as it outlines the purpose and structure of the entity, as well as the rights and responsibilities of its members.
The memorandum of association typically includes a number of key provisions, such as the name of the company, its registered office, and the objects for which it is being formed. It may also include details about the company's share capital, the powers of its directors, and the rights and duties of its members.
One of the primary functions of the memorandum of association is to define the scope of the company's activities. This is important, as it helps to ensure that the company is operating within the bounds of the law and is not engaging in activities that are beyond its mandate. It also helps to protect the company from legal liability, as it provides a clear outline of the company's purpose and activities.
In addition to defining the company's purpose, the memorandum of association may also outline the rights and responsibilities of its members. This may include details about the process for electing directors, the powers and duties of the board of directors, and the rights of shareholders.
Overall, the memorandum of association is a crucial document that serves as the foundation for a company or organization. It outlines the purpose and structure of the entity, as well as the rights and responsibilities of its members, and helps to ensure that the company is operating within the bounds of the law and is protected from legal liability.
What is Memorandum of Association? definition and meaning
Download Black by ClearTax App to file returns from your mobile phone. Companies aren't permitted to collect more money than the amount listed under authorized capital. According to Section 60 of the Act, if the amount of the authorised capital nominal capital , of the company is stated in any notice, advertisement, official publication, business letter, bill head or letter paper, it shall also contain a statement in an equally prominent position and in equally conspicuous terms the amount of capital which has been subscribed and the amount paid-up. The name of the company is a symbol of its independent corporate existence. The minimum number of members is two in case of a private company and seven in case of a public company.
Explain the Contents of Memorandum of Association
The MoA must be signed by all the directors and members of the proposed company. Thus, a trading company has an implied power to borrow money, draw and accept bills of exchange in the ordinary form, but a railway company cannot issue bills although it may borrow money. Memorandum of Association MoA consists of the following clauses : Name Clause: This clause specifies the name of the company. Every investor before investing in the Company is assumed to read and understand the inherent powers of Company. Any activity done outside the scope of the memorandum will be ultra vires and void. For a company limited by guarantee, the liability of the members is restricted by the amount each member has agreed to contribute.
Memorandum of Association vs Article of Association
The liability may be limited by shares or by guarantee. Business Law Notes Click on Topic to Read. At the same time, the Articles of Association is a document that defines the rules and regulations for the administration of the company. In case of an unlimited company, the liability of the members is unlimited whereas in case of a company limited by shares, the liability of the members is restricted by the amount unpaid on their share. Our results suggest that both ascorbate and glutathione homeostasis, modulated also via glyoxalase enzymes, can be considered as biomarkers for salt tolerance in Pokkali rice. Objects Clause of Memorandum of Association This clause specifies the objects for which the company is formed. It also informs the investors of the purposes for which their money raised by the company will be utilised by the Company.
