{"id":476,"date":"2019-09-21T13:25:51","date_gmt":"2019-09-21T13:25:51","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=476"},"modified":"2021-04-06T17:43:25","modified_gmt":"2021-04-06T12:13:25","slug":"alteration-of-memorandum-of-association-moa","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/","title":{"rendered":"Alteration of Memorandum of Association (MOA) \u2013 A complete Step by Step Procedure"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Memorandum of association is the document that governs relationship between the company\nand the outside. It is a charter of the company and mentions the extent and scope of its\nactivities. Hence, memorandum\nof association is an\nimportant document as it defines the relationship of the company with the interest and rights of the company member\u2019s.<\/p>\n\n\n\n<p>Thus, it is important to consider the approval of all the members of the company where their consent is much required before making any alteration in the memorandum of association.<\/p>\n\n\n\n<div class=\"mt-3 mb-3 embed-responsive embed-responsive-16by9\"><iframe class=\"embed-responsive-item\" src=\"https:\/\/www.youtube.com\/embed\/bj-dZWY5uCg\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\"><\/iframe><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/#What_is_MOA_and_what_are_its_different_clauses\" >What is MOA and what are its different clauses?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/#Purpose_of_memorandum\" >Purpose of\nmemorandum<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/#A_company_can_change_its_name_at_any_time_by_any_of_the_following_procedures\" >A company can change its name at any time by any of the\nfollowing procedures:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/#How_to_Reserve_the_Company_name\" >How to Reserve the Company name?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/#What_are_the_steps_required_for_Alteration_in_MOA\" >What are the steps required for Alteration in MOA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_MOA_and_what_are_its_different_clauses\"><\/span>What is MOA and what are its different clauses?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Memorandum of Association of any company is a legal document that consist fundamental information required for the Incorporation of the company. It is also called the Charter of the Company. Companies may need to bring changes in the clauses of the company, for which alteration of Memorandum of Association is required. The MOA of a company outlines the company\u2019s name, the physical address of registered office, names of shareholders, and distribution of shares.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Section 4 of the Companies Act defines MOA and Memorandum\nof Association consists of following clauses:<\/h3>\n\n\n\n<p><strong>Name Clause<\/strong>:&nbsp; The name clause of the Memorandum defines that the name of the company must be unique, authentic, and legal. The name of the company must be different from those names which are already registered with a similar name. The name availability of the companies can be checked on the&nbsp;<strong>MCA portal<\/strong><sup><a href=\"http:\/\/www.mca.gov.in\/mcafoportal\/showCheckCompanyName.do\"><strong>[1]<\/strong><\/a><\/sup> for verification. Any such changes in the name clause require alteration in MOA.<\/p>\n\n\n\n<p><strong>Registered\nOffice Clause<\/strong>: The\nRegistered Office clause comprises of all the details of the registered office\nof the company. It has the name of the state or UT of the office location which\nmay or may not contain the exact address of the office.&nbsp; It includes the\nname of the state and UT of the registered office. After the Incorporation of\nthe company, within 15 days you need to specify the exact location of the office\nand also verify the office address within 30 days from the Incorporation of the\ncompany. Any such change in the objective requires&nbsp;<strong>Alteration&nbsp;<\/strong>in\nthe Registered Office clause of the&nbsp;<strong>MOA<\/strong>.<\/p>\n\n\n\n<p><strong>Objective\nClause<\/strong>: This\nclause defines the object for which the proposed company is going to be\nincorporated, which means the purpose for which the company is being\nestablished. Any changes in the objective of the company require alteration in\nthe objects clause of the MOA.<\/p>\n\n\n\n<p><strong>Liability\nClause<\/strong>: This\nclause defines the extent to which the shareholders are liable to pay off the\ndebt obligations during the discontinuation of the company. The clause also\nstates that no member can be asked to pay more than the amount that is liable\nto be paid.<\/p>\n\n\n\n<p><strong>Capital\nClause<\/strong>: This\nclause includes the company\u2019s authorized capital with which the company is\nregistered. Capital Clause specifies the number of shares of each kind and the\nface value of each share.<\/p>\n\n\n\n<p><strong>Alteration of Memorandum in different\nclauses<\/strong><\/p>\n\n\n\n<p>Any\nalterations in the different clauses of the MOA are described as the Alteration\nof Memorandum of Association.<\/p>\n\n\n\n<p><strong>Alteration in the Name clause of\nMemorandum<\/strong><\/p>\n\n\n\n<p>If the\ncompany itself wants to change its name, then this alteration in the name\nclause of Memorandum will come under clause Section 13.<\/p>\n\n\n\n<p>Whereas for any kind of rectification in the name of the company, then the alteration will come under clause section 16 which requires approval from the Central Government.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Purpose_of_memorandum\"><\/span>Purpose of\nmemorandum<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\npurpose of having a memorandum of association is that the person outside the\ncompany must have a clear picture about the company:<\/p>\n\n\n\n<ol><li>The shareholder intending to invest his capitals should know the complete details about the\nfield he is going to put\nhis risk on.<\/li><li>Any\nother person who is planning to deal with\nthe company is obliged to\nknow without any doubt\nwhether the contractual relation with the company he is considering to enter with is the one actually relating to the\nmatter within the\ncompany\u2019s corporate objects.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_company_can_change_its_name_at_any_time_by_any_of_the_following_procedures\"><\/span>A company can change its name at any time by any of the\nfollowing procedures:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>By passing a special resolution.<\/li><li>By obtaining the approval of the Central Government. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">What are the Conditions for any such Alteration in the\nName?<\/h3>\n\n\n\n<p>The change\nof name shall not be allowed to a company which has defaulted in filing its<\/p>\n\n\n\n<ul><li>Annual returns<\/li><li>Financial Statements<\/li><li>Any document due for filing with Registrar<\/li><li>repayment of matured deposits or debentures or interest on deposits or debentures<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Reserve_the_Company_name\"><\/span>How to Reserve the Company name?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In Form INC.24 an application shall be filed along with the fee for a change in the name of the company and a new&nbsp;certificate of incorporation&nbsp;in Form No. INC.25 shall be issued to the company following upon the change in the name.<\/p>\n\n\n\n<p>In RUN\n(Reservation of Unique Name) form an application for the reservation of a name\nis done along with the required fee as provided in the companies Rules, 2014.<\/p>\n\n\n\n<p><strong>Steps taken by ROC (Registrar of\nCompanies)<\/strong><\/p>\n\n\n\n<p>On any\nchange in the name of the company, the Registrar will enter the new name in the\nregister of companies in place of the previous name. And after that, it will\nissue a fresh certificate of Incorporation with the new name and the change in\nthe name shall be complete and valid only on the issue of the fresh certificate\nof incorporation.<\/p>\n\n\n\n<p><strong>Alteration in the Objective Clause of\nMemorandum<\/strong><\/p>\n\n\n\n<p>If the\ncompany wants to change the objective of its business, then there is a\nrequirement of special resolution that must be passed. For example, Reliance is\na telecommunication industry and wants to expand or change its service, and\nthen it requires consent from the majority of its shareholders.<\/p>\n\n\n\n<p>The details\nof the objective must be published in the newspaper that too in different\nlanguages (one in English and other in the vernacular language) where the\nregistered office of the company is situated and also on the website of the\ncompany.<\/p>\n\n\n\n<p><strong>Alteration of the Registered Office\nClause<\/strong><\/p>\n\n\n\n<p>In case,\nthe company wants to change its registered office, then this alteration in the\nregistered office clause of Memorandum will come under clause Section 12.<\/p>\n\n\n\n<p>Here, the\nRegistrar will register any alteration in the Memorandum with respect to the\nobjects of the company and then certify the registration within a period of 30\ndays. Any such change in the Memorandum results in the transfer of the\nregistered office of a company from one state to another.<\/p>\n\n\n\n<p><strong>Shifting\nof the registered office from one state or UT to another state \u2013<\/strong><\/p>\n\n\n\n<p>For the\nchange in the registered office from one state to another state, an application\nunder sub-section (4) of section 13 is filed with the Central Government in\nForm No. INC.23 along with the fee. The application must be accompanied by the\nfollowing documents:<\/p>\n\n\n\n<ul><li>Copy of MOA (Memorandum of Association) with proposed alterations.<\/li><li>A copy of the details of the general meeting at which the resolution      authorizing such alteration was passed. These details give the number of votes cast in the favor or against the resolution.<\/li><li>A copy of Board Resolution or Power of Attorney.<\/li><li>A list of creditors and debenture holders is attached to the application, drawn up to the latest date prior to the date of filing of an application by not more than one month. It must include:<\/li><li>The name and address of the credit and debenture holder of the company.<\/li><li>The nature and amounts due to them in respect of debts, claims, or      liabilities.<\/li><\/ul>\n\n\n\n<p><strong>The company Secretary has a certain task to look into the company\u2019s matter. These are:<\/strong><\/p>\n\n\n\n<ul><li>To make a complete inquiry into the affairs of the company and decide that the list of creditors is true.<\/li><li>No employee of the company shall be retrenched as a result of the transfer of the registered office from one state to another.<\/li><li>Authenticated copy of the list of creditors shall be kept at the registered office of the company and any person who desires to inspect the list of creditors can do so at any time during the working hours of business.<\/li><\/ul>\n\n\n\n<p><strong>A company may alter the capital clause only if it is authorized by its articles. Alteration can be for any of the following purposes:<\/strong><\/p>\n\n\n\n<p><strong>Alteration of the Capital Clause<\/strong><\/p>\n\n\n\n<ul><li>An increase of its share capital by issue of new shares.<\/li><li>Consolidation of existing shares into shares of larger amounts.<\/li><li>Conversion of fully paid shares into stock or vice versa.<\/li><li>Cancellation of unissued shares.<\/li><\/ul>\n\n\n\n<p><strong>Alteration of the Liability Clause<\/strong><\/p>\n\n\n\n<p>The alteration of the Liability Clause restricts the liability of the Directors. The liability clause can be unlimited by passing a special resolution which should be filed with the Registrar within a period of 30 days.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_steps_required_for_Alteration_in_MOA\"><\/span>What are the steps required for Alteration in MOA?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>A Notice of Board meeting is issued at least 7 days before the date of Board meeting.<\/li><li>In the board meeting, a board resolution is being passed for the alteration in MOA subject to approval of shareholder meeting.<\/li><li>Fix the date, time and venue for convening the shareholder meeting.<\/li><li>A notice of Shareholder meeting is issued at least 21 days before the date of shareholder meeting.<\/li><li>After the shareholder\u2019s resolution is being passed, Form MGT-14 is filed within 30 days from passing of the special resolution along with the Explanatory  statement, altered copy of MOA.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Memorandum of association of any company defines the scope of its activities that are required for the <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>Incorporation of the company<\/strong><\/a>. Any such alteration in the MOA of a company is a very complicated and lengthy procedure and carried out only by a special resolution at the shareholder meeting. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/growth-of-alternative-investment-funds-aif-in-an-indian-perspective\/\">Growth of Alternative Investment Funds (AIF) in an Indian Perspective\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Memorandum of association is the document that governs relationship between the company and the outside. It is a charter of the company and mentions the extent and scope of its activities. Hence, memorandum of association is an important document as it defines the relationship of the company with the interest and rights of the company [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":488,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[115],"acf":{"service_id":"321"},"authorName":"Archita Bhattacharjee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/WhatsApp-Image-2020-03-18-at-11.26.19-AM-1.jpeg","authorDescription":"Archita Bhattacharjee is working as Legal Analyst (Team Lead, Research &amp; Development) at Corpbiz and has proving experience about 2 years as Corporate Legal Researcher in law firms as well as Rajya Sabha and authors in diverse publications. She has refined her skills by representing India in Paris, France and the University of Leiden over implications of International Humanitarian and Criminal Law being certified member of many Legal Centers.","postViews":142782,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/476"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=476"}],"version-history":[{"count":46,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/476\/revisions"}],"predecessor-version":[{"id":28646,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/476\/revisions\/28646"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/488"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}