This document is important since it contains basic conditions for the operation of a company. Charter of company is another name given to the memorandum.
Objectives, rights, liabilities running parallel to the constitution of the company makes memorandum of association.
The memorandum comprises of 6 clauses. These clauses in the MOA has to be explained as explained below:
The name of the company approved by the MCA is stated.
Under this clause the state in which the registered office of the company is situated is mentioned. There is no need to mention the complete address of the company.
This is the most important clause. This clause is further divided into 3 sub-parts
This clause states the limit up to which the each member is liable to the company.
Under this clause the maximum limit to which the company can arise capital is mentioned.
In this clause each subscriber has to sign the memorandum in the presence at least one witness and write the number of shares he/she will take. Each member has to take at least one share.
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