MOA (Memorandum of Association) and Articles of Association is the name given to a legal document which must be compulsorily formed during the initial incorporation of the company. It is like the constitution of the country. The memorandum consists of all possible norms that guide the external affairs of the country and defines its relationship with all of its shareholders.
It also comprises of the names of all the shareholders, the number of shares held by the company and the proper address of the registered office of the country.
Memorandum of Association:
Memorandum of Association (MOA) includes five different clauses as mentioned below:
- Name Clause
• Situation Clause
• Object Clause
• Liability Clause
• Capital Clause
• Subscription Clause
The name of the company is it’s first unique identity. Thus the name clause of the memorandum consists of the authentic name of the company approved by the registrars.
The situation clause comprises of all possible details of the registered office of the company. It has the name of the state of the registered office and may and may not have the exact address of the office. It also has the names of the registrars enrolled.
Object Clause is the main body of the memorandum. It provides a list of all the operations of the country. Every motive and operation the company indulges in must be mentioned in the object clause. Also, any such operation which is not mentioned in the object clause is considered to be beyond the reach of the company.
Liability Clause mentions the liability of every member of the Company. It simply states that every member of the company has a limited liability. Thus, irrespective of the financial state of the company, no member can be told to pay more than the amount that remains unpaid on his shares.
This clause mentions the share capital with which the company is registered.
This clause states that it is mandatory for every subscriber to subscribe to at least one share of the company. The subscription clause is to be filled by each and every subscriber himself and sign the Clause as well. The subscription clause also requires a witness. Witnesses can be one or multiple.