CAIIB · BRBL

Memorandum of Association and Articles of Association

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Q

What is a Memorandum of Association (MoA) in the context of company law?

A

The MoA is the charter document of a company that defines its constitution, scope of activities, and relationship with the outside world; it is the foundation on which the company is built.

Q

What is the full form of MoA in company law?

A

Memorandum of Association, the company's charter document.

Q

What is the primary purpose of the Articles of Association (AoA)?

A

The AoA contains the internal rules, regulations, and bye-laws governing the management and administration of the company, binding the company and its members.

Q

How many clauses does the Memorandum of Association mandatorily contain?

A

Six mandatory clauses define the company's constitution.

Q

Which clauses are mandatorily included in the Memorandum of Association?

A

The MoA must contain six clauses: Name Clause, Registered Office Clause, Objects Clause, Liability Clause, Capital Clause, and Subscription Clause (for public companies, an Association Clause is also required).

Q

Which statute governs the Memorandum and Articles of Association in India?

A

The Companies Act, 2013 governs both documents.

Q

What does the Objects Clause in an MoA specify?

A

The Objects Clause defines the purposes for which the company is formed and limits the scope of its activities; any act beyond these objects is ultra vires and void.

Q

What is the legal nickname given to the Memorandum of Association?

A

MoA is called the company's 'charter' or 'constitution'.

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