Memorandum of Association of Private Limited Company
Memorandum of Association (MOA) is the company’s sanction that sets down constitution of the company containing certain fundamental matters. MOA is a basic document that oversees the relationship between the company and the outside. Memorandum of association is mandatory for every company. It is the charter of the company which defines powers and limits of the company. It characterizes the objects of your organization or company.
Memorandum of Association is basically an archive that diagrams the degree inside which your business can work. MOA’s purpose is to display the permitted range or action of the company and it characterizes the parameters of your company. It is a supreme document of the company. It is one of the records required to join a company in India and states the accompanying
- The company’s name
- Its capital clause
- The object clause
- The clause of Association.
- The circumstance of its enlisted office
- The facts related to limited liability
Contents of memorandum of association
Name Clause: Name of the Company must be stated with the last word ‘Limited’ in case of Public limited company and ‘Private Limited’ in case of Private limited Company. There are provisions in the Company’s act which states certain rules regarding undesirable name.
Situation Clause: MOA must mention the state in which the registered office of the company will be located. Domicile should be stated for the determination of jurisdiction of court and registrar.
Object Clause: In object clause only one activity can be included in the main object of MOA and relating to that activity any activity can be carried out
Liability clause: Company must state the member’s liabilities whether limited or unlimited. Member of the company are affected by this clause. Company does not have authority to increase the liability without the written consent.
Capital Clause : Memorandum of Association of the company having shared capital is required to show the shared capital amount.
Association and Subscription Clause: It provides each subscriber to take at least one share in the company is required to state the number of shares. Every subscriber is required to take at least one share in the company and it should be mentioned in front of his/her name in the subscription clause.