top button
Flag Notify
    Connect to us
      Facebook Login
      Site Registration Why to Join

Facebook Login
Site Registration
Print Preview

What is Memorandum of Association of a company in india?

+1 vote
10 views
posted Apr 12, 2016 by Anushka

Share this question
Facebook Share Button Twitter Share Button Google+ Share Button LinkedIn Share Button Multiple Social Share Button

1 Answer

0 votes

The Memorandum of Association is the company's charter that governs the relationship between the company and the outside. It is one of the documents required to incorporate a company in India and states the following:
- The company's name
- The situation of its registered office
- Its share capital
- The fact that liability is limited
- Most importantly - the object for which the company has been formed.

In theory, the company can only operate in the areas mentioned in the objects clause, but in practice the clause is drawn to cover as wide an area as possible. In case a particular business area has not been covered in the object clause of the MoA and may be desired at a later date, it can be added in the Memorandum when desired. If required a 75 per cent majority of the members of the company can change the objects whenever they like. Nevertheless, it is worth bearing in mind that directors of the company will incur personal liability if the company engages in a type of business which is not authorised by the objects clause.

answer Jun 22 by Prachi
Contact Us
+91 9880187415
sales@queryhome.net
support@queryhome.net
#470/147, 3rd Floor, 5th Main,
HSR Layout Sector 7,
Bangalore - 560102,
Karnataka INDIA.
QUERY HOME
...