Legal aspects of Business

Submitted by: Eshika Jain (PGDM 21)

Simran Chandwani (PGDM 72)
Bhumika Talreja (PGDM 78)
Yashvardhan Badole (PGDM 86)
Pranav Shrivastava(PGDM 88)
Javed ali baig(PGDM 89)
 Memorandum Of Association

A Memorandum of Association (MOA) is a legal document prepared in the formation

and registration process of a limited liability company to define its relationship with
shareholders. 

It is a legal document which specifies the scope of business activities of the company
and information about shareholding of the company. The MOA is a document
prepared for the Company registration procedure.
 Features of MOA
• It is a fundamental document  of a company.

• It is essential to every company to prepare its own memorandum.

• It should be in written form.

• It contains Name, signature and other particulars of persons.

• On registration of memorandum , the company is deemed to have been registered.

•  It contains information regarding company information.

 Importance of MOA

• It shows the range of the enterprise and is the foundation on which the superstructure
of the company has been built up.
• Enables the shareholders, creditors and outsiders to show the permitted activities of
the company.
• It is a constitution of the company as it provides a working blueprint for a company.
• MOA of public ltd companies are public documents, which may be inspected by
anybody at office of registrar of companies.
• Every act of the company should be under the scope of MOA and AOA.
• It defines the rights and liability of each member of the company.
 Contents of Memorandum
As per section 13 of the companies act 1956, the Memorandum of Association states that:
• Name Clause:
• Company cannot adopt a name by which another company registered.
• Name should not be so similar of an existing company.
• Cannot use the name which is undesirable by Central Government.

• Registered Clause: As per section 146 of the companies Act 1956

• Every company should have a registration from the day it begins or from 30th day from its
incorporation whichever is earlier.
• Communications and notices are to be addressed to the registered office.
• If there is any changes it should be informed to registrar before 30 days.

• Objects Clause:
• No Ambiguity, clause must be in clear words.
• Liability Clause
• Liability should be limited of the members.
• Absence of this clause means that the liability of the members is unlimited.

• Capital Clause
• The company which is having share capital must state the amount of share capital.
• The shares issued by company can only be equity or preference.
• Authorized or nominal capital.

• Association Clause
• This clause followed by the names, addresses and descriptions of the subscribers
along with the number of shares taken.
• Sign by at least – 7 subscribers of Public limited
2 members of Private limited.