Memorandum of Associations - SS2 Accounting Lesson Note

The Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and purpose of a company. It is one of the key documents required for the incorporation of a company. The MOA is like the constitution of the company, which sets out the company's objectives, the scope of its activities, the extent of its powers, and the rights and duties of its members. The MOA typically contains the following information:

• Name Clause: This clause includes the name of the company and the state in which it is registered.

Registered Office Clause: This clause specifies the registered office of the company, which is the official address of the company.

Objective Clause: This clause outlines the main objectives and purpose of the company.

Liability Clause: This clause specifies the extent of the liability of the members of the company.

Capital Clause: This clause outlines the amount of capital that the company is authorized to raise and the types of shares that it can issue.

Association Clause: This clause states that the subscribers to the MOA wish to form a company and agree to become members of the company.

The MOA is a crucial document as it establishes the legal existence of the company and defines the scope of its activities. It also sets out the powers and limitations of the company's directors and members.

Any amendments to the MOA must be approved by the company's members and filed with the Registrar of Companies. The MOA is a public document and can be inspected by anyone who wishes to do so.