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Contents of Memorandum of Association

Updated on June 8, 2011

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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      Tanjeer Hoque Rafy 5 years ago

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

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      Rumi 5 years ago

      the information is really helpful .....

    • profile image

      anthony 4 years ago

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

    • profile image

      tee won 4 years ago

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

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      cjkamz 4 years ago

      thnx for the information

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      Nafisul islam 3 years ago

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

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      nithin.a 3 years ago

      thanks for the information

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      jaheth 3 years ago

      av been really assisted in doing my assignment

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      Asaduzzaman 3 years ago

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

    • profile image

      Farha Naaz 3 years ago

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

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      akshitkesar82@gmail.com 3 years ago

      Thanks so so much

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      zain khan 3 years ago

      That is helpful for my assignment.thanks a lot.

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      anil yadhav 3 years ago

      it is so specific and clear.

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      Johna247 3 years ago

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

    • profile image

      simeon 3 years ago

      thax for providing such usifull information

    • profile image

      Dimpy 2 years ago

      thankful to you for giving me such a valuable information

    • profile image

      Dickson Kalinga 2 years ago

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

    • profile image

      qwe 2 years ago

      thanks to you very help ful

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      gideonmatheka90@gmail. com. 23 months ago

      vry helpful nfo kep up

    • profile image

      edna 21 months ago

      business practice assignment well done thanx for yr help

    • profile image

      Debkanta Malakar 13 months ago

      Thanks for gave a very important content

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      dengwilliam89@yahoo.co.uk 8 months ago

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

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