Major Clauses in Memorandum of Association
Lawful objects can be stated and included in the objects clause of the memorandum of association, whether the company engages in all those activities or not. From a legal view-point, any activity which offends the objects clause and is not expressly stated in the Memorandum of Association would be considered ultra-vires, i.e. beyond the powers of the company.Know More IMPORTANT
The name of the company must be stated with the last word 'Limited' in case of limited companies and with the last two words 'Private Limited' in case of private limited company. The Companies Act, 2013 states that a company should not be registered with an undesirable name.
The Memorandum of Association must mention the State in which the registered office of the company will be located. The domicile of the company must be stated for determination of jurisdiction of Court, tax authorities and ROC.
The Memorandum of Association must state whether the company is limited by shares or by guarantee. Also, the Memorandum of Association must state that the liability of its members is limited. A company cannot increase the liability of its members without their written consent.
The Memorandum of Association of a company having share capital is required to show the amount of share capital with which the company is going to be registered, and the division therefor into shares of fixed value.