Understand the significance of the Memorandum of Association (MOA) for companies, its contents, and drafting considerations. Learn about the different clauses, such as Name, Registered Office, Object, Liability, Capital, and Subscribers, essential for a company’s legal structure. Get insights into the e-governance era and the importance of E-MOA during company registration.
Memorandum of Association of every company is an important and basic document of every company. It is a constitutional document based upon which every company shall carry on its business in a legal manner approved by Government authorities constituted under Ministry of Corporate Affairs. For LLP (Limited Liability Partnerships, LLP agreement is a basic document. Companies are bound by the business activities mentioned in the Main Object of the company and any business activities carried out by company outside business activities shall be considered as ultra vies (not within the meaning of law).Large Investors, banks, financial institutions, Government authorities study the contents of Memorandum of Association to ascertain genuine business activities carried out by the company and thereby interest of all stakeholders is protected. In the era of e-governance and in the wake of MCA V3 version, E-Memorandum of association needs to be uploaded at the time of registration of a company.
Every type of company form of organization shall have different forms and contents of Memorandum of Association. OPC (One Person Company , Section 8 (Non Profit Making Companies), Company Limited by Guarantee, Nidhi Companies, NBFC (Non Banking Finance Companies), Unlimited Companies with or without share capital shall have different contents based upon its nature of business.
Certain Points to be considered while drafting Memorandum of Association of every company:
Following is a sample main Object of Section 8 company in the field of Health care and education sector for reference only.
Main Object of Section 8 Company in Health care sector is as follows:
To run a Health care centre, to set up a Hospital, to provide medical related consulting to poor and needy people at affordable fees, to provide Outpatient Department (OPD) Services through expert doctor consulting, to provide all kinds of diagnostic related services and render all kinds of medical and health related services to meet social objective with a non profit motive
Main Object of Section 8 company in Education sector is as follows:
To develop, Establish, promote, facilitate, improvement of educational, social, cultural, economical and medical relief and facilities, educational scholarships to economically poor students and downtrodden at affordable rates and advancement of any other charitable and developmental objects of general public utility and community welfare, promote commerce, art, science, sports, education, research, social welfare for the benefit of underprivileged and economically backward sections of the society.
Disclaimer: The Views expressed in this Article are based upon prevailing facts and Law to date and views expressed are purely personal in nature. Readers are advised to seek expert opinion before arriving at a decision. You may reach me at email@example.com.