A memorandum or note of Association (MOA) may be a official document ready within the formation and registration method of a liability company to outline its relationship with shareholders. The MOA is accessible to the general public and describes the company's name, physical address of registered workplace, names of shareholders and therefore the distribution of shares. The MOA and therefore the Articles of Association function the constitution of the corporate. The MOA isn't applied within the U.S. however may be a legal demand for liability corporations in European countries together with the France, uk, and European nation, further as some Common wealth nations.
Some of the clauses used in the memorandum of association are as follows:
Name clause
The name clause needs you to state the legal and recognized name of the corporate. you're allowed to register a corporation name as long as it doesn't bear associate degreey similarities with the name of an existing company. Your name should finish with the word "limited" as a result of the preparation of associate degree flightless bird may be a legal demand for indebtedness corporations solely.
Registered office clause
The registered office clause needs you to point out the physical location of the registered workplace of the corporate. You're needed to stay all the corporate registers during this workplace additionally to exploitation the workplace in handling all the outgoing and incoming communication correspondence. You need to establish a registered workplace before commencing business activities.
Objective clause
The objective clause needs you to summarize the most objectives for establishing the corporate with relevancy the necessities for holding and use of monetary resources. You furthermore may ought to state supportive objectives; that's, those objectives that square measure needed to facilitate the accomplishment of the most objectives. The objectives ought to be freed from any provisions or declarations that contravene laws or public sensible.
Liability clause
The liability clause needs you to state the extent to that shareholders of the corporate area unit vulnerable to the debt obligations of the corporate within the event of the corporate dissolving. you ought to show that shareholders area unit liable solely their property and/or to their commitment to contribute to the dissolution prices upon liquidation of a corporation restricted by guarantee.
Capital clause
The capital clause needs you to state the company's approved share capital, the various classes of shares and also the nominal worth (the minimum value per share) of the shares. you're additionally needed to list the company's assets below this clause.
Association clause
The association clause confirms that shareholders certain by the MOA area unit volitionally associating and forming an organization. You need seven members to sign an MOA for a public company and not less than 2 person for a MOA of a personal company.
Some of the clauses used in the memorandum of association are as follows:
Name clause
The name clause needs you to state the legal and recognized name of the corporate. you're allowed to register a corporation name as long as it doesn't bear associate degreey similarities with the name of an existing company. Your name should finish with the word "limited" as a result of the preparation of associate degree flightless bird may be a legal demand for indebtedness corporations solely.
Registered office clause
The registered office clause needs you to point out the physical location of the registered workplace of the corporate. You're needed to stay all the corporate registers during this workplace additionally to exploitation the workplace in handling all the outgoing and incoming communication correspondence. You need to establish a registered workplace before commencing business activities.
Objective clause
The objective clause needs you to summarize the most objectives for establishing the corporate with relevancy the necessities for holding and use of monetary resources. You furthermore may ought to state supportive objectives; that's, those objectives that square measure needed to facilitate the accomplishment of the most objectives. The objectives ought to be freed from any provisions or declarations that contravene laws or public sensible.
Liability clause
The liability clause needs you to state the extent to that shareholders of the corporate area unit vulnerable to the debt obligations of the corporate within the event of the corporate dissolving. you ought to show that shareholders area unit liable solely their property and/or to their commitment to contribute to the dissolution prices upon liquidation of a corporation restricted by guarantee.
Capital clause
The capital clause needs you to state the company's approved share capital, the various classes of shares and also the nominal worth (the minimum value per share) of the shares. you're additionally needed to list the company's assets below this clause.
Association clause
The association clause confirms that shareholders certain by the MOA area unit volitionally associating and forming an organization. You need seven members to sign an MOA for a public company and not less than 2 person for a MOA of a personal company.
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