Clauses of memorandum of association.

memorandum of association is a document which frames the constitution of a company it acts as a foundation for a company on which the company is built.

memorandum of association has many clauses among them first clause is name clause where in the name clause a company must have its own name and that it must be the symbol of independent corporate existence the company must not choose the name which is already owned by another company.

next one is situation clause in which the state or the place where the company's registered must be returned and mentioned in memorandum the exact address is not required and within 15 days of incorporation the company must have its registered office for communication purposes where the notices will be sent

Third one is object clause object clause of a means it sets out the objective of the company in the purpose of a company for which it is framed.

next one is liability clause its States the liability of the company whether it is limited by shares are limited by guarantee in the case of company limited by shares the liability of members will be limited to the amount of shares held by them and in unlimited company e the liability of member is unlimited. they must bring their personal assets to clear the debts of the company.

51 is the capital clause the capital clause state the amount of capital with which the company has been started or registered this capital is divided into shares and that shares must be of fixed value which we called it as a nominal value of shares the capital must be nominal authorised or registered and the can issue both equity as well as preference shares the capital are divided into these two heads as equity and preference.

6th one is association association clause it is also called as the subscription clause in this the person will subscribe to the memorandum of association and a desire to take the shares of the company and will subscribe to it.

the last clauses succession clause this clause is applicable only for one person companies as this clause will state the name of person whom we call it as nominal person or nominee, in the event of the death of the owner according to the contract of the subscriber denominational become the member of the company and continue it.