It explains about Memorandum of Association

1. BY
R. MOHANARUBAN
ASSISTANT PROFESSOR OF COMMERCE
SRM Institute of Science and Technology, Ramapuram.

3. ▶ The memorandum of association is a fundamental
document of a company.
▶ This is one of the important documents to be
submitted at the time of registration of a company.
▶Memorandum is the document that governs the
relationship between the company and the outside.
▶It is the charter of the company and defines the scope
of its activities

4. ation
According to section 2(56) “ memorandum”
means the memorandum of association of a
company as originally framed or as altered
from time to time in pursuance of any
previous company law or of this act .

7. The Memorandum ofAssociation of a company shall
state the name of the company with the last word
“Limited” in the case of a public limited company, or
the last words “private company” in the case of a
private limited company.

8. The state in which the registered office of a company
will be situated is mentioned in this clause. The
registered office of the company is the official
address of the company where the statutory books
and records must normally be kept.

9. This is the most important clause in the memorandum,
because it not only shows the objects for which the
company is formed, but also determines the extent of
the powers , which the company can exercise to
achieve the objects.

10. The liability clause requires to state the extent to which
the shareholders of the company are liable to the
debt obligations of the company in the event of the
company dissolving. There are companies limited by
shares and guarantee.

11. The capital clause requires to state the company’s
authorised share capital, the different categories of
share and the nominal value ( the minimum value
per share) of the share. It is also required to list the
company’s assets under this clause.

12. 6. USE
This clause shall contains the declaration of its
subscribers. The subscribers declare that, they desire
to be formed into a company and agree to take the
shares stated against their names.