A company is a corporation, which has its own set of boundaries beyond which, it cannot function. A company is set up with a specific motive and therefore functions according to that motive, in order to promote and enhance the purpose for which they have been established.

A Memorandum of association is a document that acts as the boundaries or a framework for a corporation, beyond which they cannot function. It is an essential document which is required to be made by each and every company. In legal terms, a memorandum of association is a legal document that is required for the registration of the company. A company cannot be registered without presenting the memorandum of association.

This document acts as the face of the company. Since it is a public document and available to all, any person can access and get the relevant information about the company. Memorandum of association contains the following clauses:

1. Name clause: contains the name of the company, indicating what type of company it is (for example, a public company, or a private limited company, etc)
2. Registration clause: contains where the company has been registered and where does it have its main office
3. Object clause: contains the main objective which the company works with reference to
4. Liability clause: indicates the liability of the company.
5. Capital clause: Contains the information about the total capital which the company has.

Memorandum of association is drafted according to the type of company which is being established. The main clause to focus on here is the object clause, the rest of the clauses may be amended easily but it’s not the same with the object clause. The object clause states the objective of the company, which the company wishes to pursue through the services being provided by them. Therefore, this clause needs to be framed in a manner that it covers each and every aspect of what are the main goals of the company and how the company wishes to pursue those goals. Object clause creates a boundary for the company and its members beyond which they cannot act. If any act is done beyond the object clause, it automatically becomes ultra virus in the eyes of law, and that carries legal consequences as well. However, the consequences may differ depending on the case in the case scenario. Therefore, one must be sure of the contents, which are there in the memorandum of association, as it is a document that decides how and in what ways the company functions.

 This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.