Memorandum of Association

A Memorandum of Association (MOA) is a legal document that defines the basic structure and operations of a company. It is filed with the registrar of companies when a company is incorporated. The MOA contains the following information:

  • The name of the company
  • The type of company (public or private)
  • The registered office of the company
  • The objects of the company (the activities that the company is allowed to carry out)
  • The authorized share capital of the company
  • The liability of the members (the extent to which the members are liable for the debts of the company)

What are the compulsory clauses of an MOA?

The compulsory clauses of an MOA are as follows:

  • Name clause
  • Registered office clause
  • Object clause
  • Liability clause
  • Capital clause
  • Association clause
  • One-Person Company clause

What are the optional clauses of an MOA?

The optional clauses of an MOA are as follows:

  • Restriction on transfer of shares clause
  • Power to alter MOA clause
  • Power to appoint liquidator clause
  • Power to make calls on shares clause
  • Power to issue redeemable shares clause
  • Power to issue preference shares clause

MCQs on Memorandum of Association

  1. Which of the following is not a compulsory clause of an MOA?
    • Name clause
    • Registered office clause
    • Object clause
    • Liability clause
    • Capital clause

The answer is (d). The capital clause is an optional clause of an MOA.

  1. Which of the following is an optional clause of an MOA?
    • Restriction on transfer of shares clause
    • Power to alter MOA clause
    • Power to appoint liquidator clause
    • Power to make calls on shares clause
    • All of the above

The answer is (d). All of the above are optional clauses of an MOA.

  1. Which of the following is not a requirement for a company to have a valid MOA?
    • The MOA must be in writing.
    • The MOA must be signed by all the subscribers to the company’s memorandum of association.
    • The MOA must be filed with the registrar of companies.
    • The MOA must be in the prescribed form.

The answer is (c). The MOA does not need to be in the prescribed form. The prescribed form is only used for companies incorporated under the Companies Act of 1956.