Memorandum of Association

Memorandum of Association

• Is used in the formation of private and public limited companies.
• Is prepared by the company founders/their representatives.
• Is sent to the Registrar of companies for approval.
• Contains:
• the name of the company followed by the words “private limited” or abbreviation thereof for private limited companies and “plc” for public limited companies.
• The address of the company and its registered office address.
• The purpose or objects of the company.
• The names of the first company’s director(s).
• the amount of share capital to be issued to shareholders.
• The classes of shares to be issued.
• A statement whether a company is either “private” or “public”
• A statement that the liability of the shareholders is limited.
• An undertaking by the promoters to form a registred company and purchase a stipulated number of shares.

Importance:

• is an application to register a company.
• Is used during the formation of a company.
• A company’s charter which governs the company’s relationship with the outside world.

To access more topics go to the Commerce Notes page.