{"id":50700,"date":"2022-11-15T15:32:31","date_gmt":"2022-11-15T10:02:31","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=50700"},"modified":"2022-11-15T17:45:09","modified_gmt":"2022-11-15T12:15:09","slug":"moa-memorandum-of-association-heres-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/moa-memorandum-of-association-heres-what-you-need-to-know\/","title":{"rendered":"MOA (Memorandum of Association): Here\u2019s What You Need to Know"},"content":{"rendered":"\n<p>A Memorandum of Association serves as a charter document of\ncompanies falling under the Companies Act 2013. It comprises six fundamental\nclauses, namely- Name Clause, Domicile Clause, Objects Clause, Liability\nClause, Capital Clause, and Subscription Clause, that govern the organization\nto its entirety. Here\u2019s everything you need to know about MoA. <\/p>\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\/moa-memorandum-of-association-heres-what-you-need-to-know\/#The_significance_of_MoA_in_the_Corporate_Landscape\" >The significance of MoA in the Corporate Landscape<\/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\/moa-memorandum-of-association-heres-what-you-need-to-know\/#How_MOA_Memorandum_of_Association_and_AOA_are_different\" >How MOA (Memorandum of Association) and AOA are different?<\/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\/moa-memorandum-of-association-heres-what-you-need-to-know\/#Prescribed_forms_of_Memorandum_of_Association\" >Prescribed forms of Memorandum of Association<\/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\/moa-memorandum-of-association-heres-what-you-need-to-know\/#Casting_Light_on_the_Role_of_Memorandum_of_Association\" >Casting Light on the Role of Memorandum of Association<\/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\/moa-memorandum-of-association-heres-what-you-need-to-know\/#Key_Facts_about_the_Memorandum_of_Association\" >Key Facts about the Memorandum of Association<\/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\/moa-memorandum-of-association-heres-what-you-need-to-know\/#A_Detailed_Overview_of_Clauses_of_Memorandum_of_Association\" >A Detailed Overview of Clauses of Memorandum of Association<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/moa-memorandum-of-association-heres-what-you-need-to-know\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_significance_of_MoA_in_the_Corporate_Landscape\"><\/span><strong>The significance of MoA in the Corporate Landscape<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Devising a Memorandum of Association is the first step towards the\ncompany incorporation process. No organizations can perform their undertakings\nbeyond the scope underlined in MOA. It also clarifies the interplay between\nshareholders and the company. <\/p>\n\n\n\n<p>Memorandum of Association acts as a primary source of interaction for new investors intending to put their funds into the company. There is another important document that is equally important as the MOA called the Article of Association. It paves the roadmap for the day-to-day managerial affairs of the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_MOA_Memorandum_of_Association_and_AOA_are_different\"><\/span><strong>How MOA (Memorandum of Association) and AOA are different? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Devising a Memorandum of Association as per the governing act is an\nimportant part of the company incorporation process. In most nations, filing a\nMemorandum of Association is a part of ROC compliance. The Ministry of\nCorporate Affairs has introduced the SPICe+ form that eases the company\nincorporation process. The <strong>SPICe+<\/strong> is\nan e-form that contains two important parts, namely- Part A and Part B. <\/p>\n\n\n\n<p>The submission of this e-form is followed by the furnishing of <strong>e-MoA (INC-33) and e-AoA (INC-34)<\/strong>. The\nnon-submission of these important forms prevents the applicant from completing\nthe incorporation formalities. <\/p>\n\n\n\n<p>The Memorandum of Association specifies the organization\u2019s interplay\nwith the shareholders. Apart from that, it also embodies the object of the\ncompany and the power within which it can act. The Article of Association is\nmuch more elaborate than the Memorandum of Association as it renders an array\nof information such as:<\/p>\n\n\n\n<ul><li>Methods of issuing shares <\/li><li>Dividend Payouts<\/li><li>Audit fiscal records <\/li><li>Voting rights <\/li><\/ul>\n\n\n\n<p>Without AoA, the governing authority cannot legalize the autonomous\nidentity of the company that separates it from its stakeholders. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prescribed_forms_of_Memorandum_of_Association\"><\/span><strong>Prescribed forms of Memorandum of Association <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"wp-block-table table table-bordered\"><tbody><tr><td>\n  <strong>Tables <\/strong>\n  <\/td><td>\n  <strong>Company <\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>Table A<\/strong>\n  <\/td><td>\n  A firm limited by shares\n  <\/td><\/tr><tr><td>\n  <strong>Table B<\/strong>\n  <\/td><td>\n  An organization limited by guarantee &amp; lacking share capital\n  <\/td><\/tr><tr><td>\n  <strong>Table C<\/strong>\n  <\/td><td>\n  An organization limited by guarantee &amp; have a share capital\n  <\/td><\/tr><tr><td>\n  <strong>Table D<\/strong>\n  <\/td><td>\n  An unlimited company\n  <\/td><\/tr><tr><td>\n  <strong>Table E<\/strong>\n  <\/td><td>\n  An unlimited company with a share capital\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Casting_Light_on_the_Role_of_Memorandum_of_Association\"><\/span><strong>Casting Light on the Role of Memorandum of Association <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here&#8217;s what the Memorandum of Association specifies in general: <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Identify the area of operation <\/em><\/strong><\/h3>\n\n\n\n<p>A Memorandum of Association specifies undertakings that a company\ncan perform. It does not permit companies to serve any function or task that\nfalls outside its ambit.&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Specifies interplay\nbetween the company and stakeholders <\/em><\/strong><\/h3>\n\n\n\n<p>The ultimate objective of the Memorandum of Association is to\nfacilitate details about creditors, shareholders, and other stakeholders. <\/p>\n\n\n\n<p><strong><em>Fixed the\ncompany\u2019s charter <\/em><\/strong><\/p>\n\n\n\n<p>The Memorandum of Association serves as a fixed charter for the\norganization in accordance with section 16 of the Companies Act.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Basis of incorporation <\/em><\/strong><\/h3>\n\n\n\n<p>Applicants seeking an incorporation certificate is required to file\na Memorandum of Association with the RoC i.e, Registrar of Companies. To get\nincorporated, the MoA must enclose the signature of a minimum of seven persons\nin case of a public ltd. co. and 2 authorized people in the case of a private\nlimited company. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Facts_about_the_Memorandum_of_Association\"><\/span><strong>Key Facts about the Memorandum of Association <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The Memorandum of Association\nunderpins the scope and extent of the undertakings that an organization is\nlimited to. The company can engage in affairs that fall under the ambit of the\nMemorandum of Association. <\/li><\/ul>\n\n\n\n<ul><li>If a company wishes to augment\nits presence in other business domains, the same must be reflected in the Memorandum.\n<\/li><\/ul>\n\n\n\n<ul><li>The drafting of the Memorandum\nof Association as per the governing act is compulsory for companies fenced by\nlimited liability. Such companies include a <strong><em><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/llp-registration\">Limited Liability Partnership<\/a> (LLP) and Private Limited Companies (Pvt Ltd)<\/em><\/strong>.<\/li><\/ul>\n\n\n\n<ul><li>MOA draws a line of distinction\nbetween the company and shareholder by defining their relationship explicitly. <\/li><\/ul>\n\n\n\n<ul><li>The Memorandum of Association\nis publicly accessible and hence anyone can use it to their advantage,\nparticularly in case of investment. Right to Information (RTI) Act grants\nexclusive rights to an Indian citizen to access government-related documents\nwithout hassle. <\/li><\/ul>\n\n\n\n<ul><li>Memorandum of Association also\npens down the company\u2019s name, address, shareholders\u2019 details, and distribution\nof shares. Sometimes, MoA entails exemptions for a particular organization. <\/li><\/ul>\n\n\n\n<ul><li>The MoA and AoA, in\nconjunction, pave the foundation of the company&#8217;s constitution. The Memorandum\nof Association has no legal significance in a nation like the United States.\nHowever, it is a mandate for LLCs operating in European nations such as France,\nthe United Kingdom, and the Netherlands. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Detailed_Overview_of_Clauses_of_Memorandum_of_Association\"><\/span><strong>A Detailed Overview of Clauses of Memorandum of Association <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Memorandum of Association contains six fundamental clauses that as\ndescribed below: <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Name Clause<\/em><\/strong><\/h3>\n\n\n\n<p>As the name suggests, the name clause is all about the name of the\ncompany. While drafting the MoA, make sure the selected company name is unique\nand non-conflict to its entirety. Any similarity in this context can lead to a\nlegal dispute. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Domicile Clause<\/em><\/strong><\/h3>\n\n\n\n<p>The domicile clause entails the details about the company\u2019s\nregistered office address. Also, it contains the name of the enrolled\nregistrars. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Objects Clause<\/em><\/strong><\/h3>\n\n\n\n<p>The objects clause is one of the important clauses in MoA as it\nentails detailed information about the company\u2019s operation and goal. Once the\nMOA comes into effect, no registered companies can engage in affairs that are\nbeyond this clause. The statement of objects confers the following benefits to\nthe people associated with the company. <\/p>\n\n\n\n<ul><li>Ensure protection for the\nsubscribers by instilling clarity on the invested funds.<\/li><li>Allows shareholders to respond\ncautiously during disputes by ensuring clarity on the extent of the firm\u2019s\npowers.<\/li><li>Prevent BODs from using the\ncompany\u2019s funds for purposes other than those mentioned in MOA. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Liability Clause<\/em><\/strong><\/h3>\n\n\n\n<p>The liability Clause reflects the member\u2019s liability in the company.\nIt confirms that each member adheres to a limited liability. Also, it encloses\nthe amount to be paid by each member in case of mishaps like closing or winding\nup. Simply put, the clause limits the amount of contribution to be made by\nmembers to their shareholding threshold. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Capital Clause<\/em><\/strong><\/h3>\n\n\n\n<p>This clause illustrates the share capital with which the firm is\nincorporated. Additionally, this clause also mentions the following <\/p>\n\n\n\n<ul><li>Types of Shares<\/li><li>The no. of each type of share <\/li><li>Face value of each share <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Subscription Clause<\/em><\/strong><\/h3>\n\n\n\n<p>The subscription clause is the last in the Memorandum of\nAssociation. It pens down the shareholder\u2019s motive behind the company\u2019s\nincorporation and also illustrates that the subscribers confirm to buy the\ncompany\u2019s shares as per the MoA subscriber sheet. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong>Memorandum of Association<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/en.wikipedia.org\/wiki\/Memorandum_of_association\"><strong>[1]<\/strong><\/a><\/sup> is more than a mandate for any company since it serves various purposes. Drafting of MoA is not difficult anymore, thanks to the e-filing procedure introduced by the Ministry of Corporate Affairs. The founders and the members of the company must pay undue attention to the details to be incorporated in MoA to avert any legal complications or disputes in the future. <\/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\/between-memorandum-of-association-and-articles-of-association\/\">Know the difference between Memorandum of association and articles of association<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Memorandum of Association serves as a charter document of companies falling under the Companies Act 2013. It comprises six fundamental clauses, namely- Name Clause, Domicile Clause, Objects Clause, Liability Clause, Capital Clause, and Subscription Clause, that govern the organization to its entirety. Here\u2019s everything you need to know about MoA. The significance of MoA [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":50701,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[2863],"acf":{"service_id":"321"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":13260,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50700"}],"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\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=50700"}],"version-history":[{"count":5,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50700\/revisions"}],"predecessor-version":[{"id":50706,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50700\/revisions\/50706"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/50701"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=50700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=50700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=50700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}