Contents of Memorandum of Association

Contents of Memorandum of Association

Contents of Memorandum of Association According to the Companies Act 1994, the Memorandum of Association must include the following Clauses:

1. Name Clause

Every company name must end with Limited (Ltd.). No name of the company should be the name of the existing company, king, queen, president, prime minister, Father of Nation or anything that signifies government sponsorship.

2. Situation and Address Clause

This clause should include the address and situation of the company, which is mention in the registration.

3. Area of Business

It should include the current and potential area of the business. It should be written carefully, because it made the boundary around the business operations.

4. Objective Clause

This clause is the most important clause of MA. This clause identifies the scope of the business. Beyond these identified scopes, the business can’t move. For example, If a company says its objective to do only Shoe business, it cannot do another business.

5. Liability Clause

This clause tells about the duties and responsibilities of the Owners; i.e., whether the share holders are liable for their share capital or promise.

6. Capital Clause

This clause includes the amount of capital, its type, each share price, etc.

7. Consent Clause

Here the directors declare in a written statement that they are agreeing to be the director of the proposed company by buying certain amount of a share. Generally, the promoters become the directors. This statement should include a witness and the directors’ signature with their name, address and occupation.

Distinction between the Memorandum of Association (MA) and Article of Association (AA)

Distinction no.
Memorandum of Association
Article of Association
1
The MA of a company is its charter and defined the limitations of the powers of the company, established under the Company Act 1994
The AA of a company defines the rules and regulations concerning the internal affairs of the company.
2
The company can’t operate beyond this document
The AA has to follow the MA for any matter.
3
There is no supplement for the MA
Table-A could be used as the supplement of AA
4
It determine the nature of relationship with the third party
It determine the internal affairs of the company

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Comments 22 comments

Tanjeer Hoque Rafy 4 years ago

thank for this post...I always remember this part of lecture.


Rumi 4 years ago

the information is really helpful .....


anthony 4 years ago

thanks for the contents of MA,they`ve really assisted me in completing my assignment


tee won 4 years ago

This info. Give a lot of pple to know more without much stress.


cjkamz 3 years ago

thnx for the information


Nafisul islam 3 years ago

attractively done ... thanks a lot ! (Y)


nithin.a 3 years ago

thanks for the information


jaheth 3 years ago

av been really assisted in doing my assignment


Asaduzzaman 3 years ago

That information is really helpful....So thanks...


Farha Naaz 2 years ago

Difference between MA and AA is now clear.....Thanks a lot


akshitkesar82@gmail.com 2 years ago

Thanks so so much


zain khan 2 years ago

That is helpful for my assignment.thanks a lot.


anil yadhav 2 years ago

it is so specific and clear.


Johna247 2 years ago

That alone wwas an egregious oversight on thheir own part, since kbeaekkebeed


simeon 2 years ago

thax for providing such usifull information


Dimpy 2 years ago

thankful to you for giving me such a valuable information


Dickson Kalinga 2 years ago

Very helpful I have been assisted in my studies for Comp Law.


qwe 2 years ago

thanks to you very help ful


gideonmatheka90@gmail. com. 17 months ago

vry helpful nfo kep up


edna 16 months ago

business practice assignment well done thanx for yr help


Debkanta Malakar 7 months ago

Thanks for gave a very important content


dengwilliam89@yahoo.co.uk 2 months ago

this helps me a lots on my business studies assigment,,,,,,,,,,,,thank you so much for the post...

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