DEPARTMENT OFTECHNICAL

EDUCATION ANDHRAPRADESH
Name : N. Ramachandra Reddy
Designation : Head of CCP
Branch : DCCP
Institute : G.P.W; Warangal
Year/Semester : DCCP I YEAR
Subject Code : 104 Business Organization
Topic : Meaning of Memorandum of
Association
Duration : 50 Mts
Sub Topic : Meaning of Memorandum of
Association
Teaching Aids : PPT, Pictures, Animations .
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Objectives
On completion of this period, you would
be able to know
 The meaning of Memorandum of Association

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Recap

So far we have learnt

 Meaning of Memorandum of Association
 How Articles of Association is altered
 Limitations of Articles of Association
 What is Table-A

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Now we will discuss

 Different Clauses of memorandum of Association

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Clauses Of Memorandum Of Association

The Memorandum of Association of a Public Limited

Company contains the following Clauses.
 Name Clause
 Domicile Clause
 Object Clause
 Liability Clause
 Capital Clause
 Association and Subscription Clause

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Name Clause:

 The first paragraph of the Memorandum of

Association contains the name of the Company.
 States the name of the Company under which it
has to carry on its business.
 The name must be approved by the Central
Government

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Points to be noted while choosing name

 Must not directly or indirectly indicate

participation or patronage of Government
 For example, it should not include words such as,
“small scale industries”, “cottage industries”,
“President”, “Rashtrapathi”, “Republic”, “Federal”,
“Union”, “National”, “Municipal”, “provincial” etc.

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 Should not be objectionable under the provisions
of the Emblems and Names (Prevention of
Improper use) Act, 1950
 Should not be identical to or resemble the name of
an existing Company registered with Registrar of
Joint Stock Companies.
 It Is insisted to prevent any confusion in the public.

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 It must not suggest any connection with or
Association or patronage of a national hero.

 It must not include the word Co-operation.

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 The name of a Public Limited Company should
end with the world “Limited”
 In case of a Private Company, the name should
end with “Private Limited”

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Company formed for non – Commercial
purpose with limited liability such as,
 Promotion of science, art, culture, religion, charity,
sports, education etc.,
 Not distributing dividends to its members
 May be allowed by the Central Government
 To drop the word “Limited” or “Private Limited”
 Under a Special License

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Domicile Or Situation Clause:

 The second paragraph of Memorandum of

Association
 The place and the State in which the Registered
Office of the Company is situated
 Determines the jurisdiction for any legal problems.

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Important documents of the Company
 Statutory Books, common Seal, Register of
Members, Minute Books, Books of Accounts
 kept in the Registered Office for inspection by the
Members and the public.

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 The Registrar of Joint Stock Companies sends
Notices, Circulars and other correspondence related
to the Company to this Office.

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Summary

 List of Clauses of Memorandum of Association

 Contents of Name and Domicile or Situation
clauses.
 The Name Clause contains the Name of the
Company
 The Domicile Clause contains the State in which
the Registered Office of the Company is situated.

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Quiz

1. The Name of the Company is mentioned in

• Domicile Clause
• Object Clause
• Name Clause
• Liability Clause

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 The Registered Office of the Company is
mentioned in

a) Object Clause
b) Name Clause
c) Association Clause
d) Domicile Clause

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Frequently Asked Questions

3. Explain Name and Domicile clauses of

Memorandum of Association?
4. List out different clauses of Memorandum of
Association?

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Assignment
 What do you understand by Memorandum of
Association? Explain the contents of Name and
Domicile Clauses?

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Thank you

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