Memorandum of Association
Memorandum of Association is the constitution or charter of a company. It sets out the limit within which the company must function. It defines the objects and powers of a company The purpose of memorandum is to enable the shareholders, creditors and outsiders who deal with the company to know the permitted range of its activities. A company cannot undertake activities, which are not lasted in its Memorandum of Association. The memorandum is considered the foundation on which a company’s structure is based.
The main clauses of Memorandum of Association age: (i) Name clause, (ii) Registered office clause, (iii) Objects clauses, (iv) Liability clause, (v) Capital clause, and (vi) Association or subscription clause.
The objects clause is the core of the Memorandum of Association. It specifies the objectives of a company in the following order:
The main objects of the company and the objects incidental or ancillary to the attainment of the main objects.
Other objects of the company.