Joyce Zacharia
Jan 28
Explain the contents of a memorandum association??
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Jan 28
A memorandum of association is a legal document that sets out the fundamental details and rules of a company. It is one of the key documents required for the incorporation of a company and is submitted to the relevant government authority during the registration process.
The contents of a memorandum of association typically include the following:
1. Name Clause: This clause states the name of the company, which must be unique and not similar to any existing company name.
2. Registered Office Clause: It specifies the address of the registered office of the company, which is the official address for all legal communications.
3. Object Clause: This clause outlines the main objectives and activities that the company intends to undertake. It defines the scope of the company's operations and limits its activities to those mentioned in the clause.
4. Liability Clause: It states the type of liability that the members of the company have in case of any debts or obligations. It can be limited or unlimited liability.
5. Capital Clause: This clause specifies the authorized share capital of the company, which represents the maximum value of shares that the company can issue to its shareholders.
6. Association Clause: It states that the subscribers to the memorandum of association wish to form a company and agree to become members of the company.
7. Subscription Clause: This clause includes the names, addresses, and signatures of the subscribers who are initially investing in the company and becoming its members.
The memorandum of association is a public document and can be accessed by anyone who wishes to know the basic details of the company. It provides a legal framework for the company's activities and acts as a reference point for its shareholders, directors, and other stakeholders.
The contents of a memorandum of association typically include the following:
1. Name Clause: This clause states the name of the company, which must be unique and not similar to any existing company name.
2. Registered Office Clause: It specifies the address of the registered office of the company, which is the official address for all legal communications.
3. Object Clause: This clause outlines the main objectives and activities that the company intends to undertake. It defines the scope of the company's operations and limits its activities to those mentioned in the clause.
4. Liability Clause: It states the type of liability that the members of the company have in case of any debts or obligations. It can be limited or unlimited liability.
5. Capital Clause: This clause specifies the authorized share capital of the company, which represents the maximum value of shares that the company can issue to its shareholders.
6. Association Clause: It states that the subscribers to the memorandum of association wish to form a company and agree to become members of the company.
7. Subscription Clause: This clause includes the names, addresses, and signatures of the subscribers who are initially investing in the company and becoming its members.
The memorandum of association is a public document and can be accessed by anyone who wishes to know the basic details of the company. It provides a legal framework for the company's activities and acts as a reference point for its shareholders, directors, and other stakeholders.
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