Summary of Post
Memorandum of association is some what identical to a partnership deed in case of a partnership business. But not equal to. Memorandum clearly states the conditions and the relationship of members with company. It is a legal document submitted for the purpose of registration of company. The company is ruled in accordance with the provisions in the memorandum of association. It is said to be the constitution of the company.
“The purpose of Memorandum of Association is to enable the share holders, creditors and those who deal with the company to know what its permitted range of enterprise is.” – Lord Macmillan.
- The name of the company.
- The address of the registered office of the company.
- The main objects to be pursued by the company.
- That the liability of members is limited.
- The amount of share capital with which the company proposes to be registered and the division there of into shares of fixed amount.
- A declaration by persons signing it that they are desirous of being formed into a company and that they are willing to take up and pay for the number of shares mentioned against their names.
sample declaration :
We, the several persons, whose names and addresses are subscribed, are desirous of being formed into a Company in pursuance of this Memorandum of Association and we respectively agree to take the number of shares in the capital of the Company set opposite our respective names.
The memorandum must be signed by at least seven persons (at least two in the case of a private company) who must each take up at least one share.