What is Memorandum of Association?

[Gas]

The grounding of memorandum of association is the foremost stride in shaping of a Company. Sec 2 (28) of the Company’s Act defines Memorandum of association. It is a deed which encloses the basic conditions upon which only the company is permitted to be incorporated. It defines the power or extent of the actions of the company. It lays down the object of the company and the company cannot surpass the objects even if each associate concurs. Thus, a company cannot lawfully do any take action which is not sanctioned by its memorandum of association. It is the heart and soul of a company.

Memorandum of a company contains the following clause:
1. Name Clause
2. Registered Office Clause
3. Objective Clause
4. Liability Clause
5. Capital Clause
6. Subscription Clause

 

[bharat]

Memorandum of Association is the basic necessity that needs to be fulfilled before forming a company. Memorandum of Association provides the basic object of the company, how it will work, name of the company etc. It is provides a company its actual and legal identity and helps a Company to work according to the objective incorporated in it.