the main objective of a company, as defined in its Memorandum of Association (MOA) in India, is a statement that outlines what the company aims to do and the kind of business activities it is allowed to engage in. It serves as a legal document that sets the boundaries for the company's operations and provides a clear understanding of its purpose. The main objective can include details about the industry the company operates in, the products or services it intends to offer, and the overall goals it aims to achieve.
In Short, MOA is:- |
Ø Memorandum of association is the charter and constitution of the company. |
Ø It is a legal document that defines the scope of business activities. |
Ø it regulates the external affairs, and third-party contracts of the company. |
Ø It contains the fundamental terms and conditions under which the company is allowed to operate. |
Ø This document is prepared at the time of the formation of the company. |
Ø It defines the relationship between the company and outsiders. a company cannot act beyond its memorandum it is ultra-virus (outside the power of authority) and the ultra-virus act cannot even ratified by the whole body of shareholders. |
MOA consists of the following Clauses:
| Name clause: The name clause depends on the private or public company. · Last word limited in case of a public limited company · Last word private limited in case of a private limited company
Registered office clause: MOA contains the state in which the registered office is situated.
Object clause: The object clause contains the object for which the company is incorporated and any incidental or other object also mentioned.
Liability clause: The liability clause contains whether the liability of members limited or unlimited
Capital clause: The capital clause contains the maximum capital that a company can raise which is also called the authorized/nominal capital of the company. This also explains the division of such capital amount into the number of shares of a fixed amount each.
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You can download all the main objectives of the company.
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