Memorandum of Association is one of the important and significant topic in the sphere of the corporate world. Memorandum of Association can also be referred to as memorandum. It is considered to be complementary to Article of Association. In terms of the definition, it is an important corporate document in certain jurisdiction. Basically it is the main and compulsary document that is required during the time of the incorporation of the company.

It includes or lays down the fundamentals and foundation of a company, more precisely the scope, powers, objects and the area of operation of the company. Lored Cairns said " the memorandum of association of a company is the charter and defines the limitation of the power of the company established under the Act". Thus, it is a document which sets out the constitution of the company.

It is expected to frame and draft in a proper manner so that the words are not breached. The process of the making of the memorandum is though a difficult procedure. The format of the memorandum should kind of contain same information in an almost same format namely,

• Name Clause of memorandum of association: The name of the company should be stated in the clause.
• Situation clause of Memorandum of Association: In the clause, the name of the state where the Company's registered office is located should be mentioned. The mentioned company should intimate about the location of registered office to the registrar within thirty days from the date of incorporation or commencement of business.
• Object clause of Memorandum of Association: This clause specifies the objects for which the company is formed.
• Liability clause of Memorandum Association: The liability may be limited by shares or by guarantee. The clause may be omitted in case of unlimited liability.
• Capital clause of Memorandum of Association: The division of capital into shares is mentioned in this clause. This clause also mentions the maximum amount of capital that can be raised by the company. If some special privilages provided to any specific shareholder then, mention of it may also be made in this clause.
• Subscription Clause of Memorandum of Association: It contains basic information of the first subscribers such as names and addresses. The minimum number of members is two in case of a private company and seven in case of a public company.

Depending on type of company there are three types of a memorandum of association:

• Memorandum of Association of a company limited by shares
• Memorandum of association of a company limited by guarantee without share capital
• Memorandum of Association of a company limited by guarantee and with share capital.

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. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to human error or otherwise.