MOA INTRODUCTION

▪ Memorandum of association is legal document which

describes the purpose for which a company is formed.

▪ It contains all the rules and regulations that governs a

company.

▪ It is a important document for incorporation of the

company.
 NAME
CLAUSE

CAPITAL OBJECT
CAUSE CLAUSE

TYPES OF
CLAUSES
SUBSCRI LIABILITY
PTION CLAUSE
CLAUSE
REGISTE
RED
OFFICE
CLAUSE
 CAPITAL CLAUSE
MEANING
▪ Capital clause mentions the details of total share
capital of the company i.e. authorised or nominal
capital of company.
WHAT IS SHARE CAPITAL
✓ A company is an artificial person therefore they are unable to
generate their capital on their own.
✓ A person from whom the capital is collected is called as shareholder.
✓ The amount that they contribute is called as share capital.
 WHAT IS AUTHORISED CAPITAL OR NOMINAL
As per Section 2(8)
✓ It is a maximum amount of the capital that a company is
allowed to issue from its shareholders.
.
▪ Capital clause is compulsory for limited
companies.
▪ If a company wants to raise more capital than
authorized capital, then company can alter the
capital clause.
FOR EXAMPLE
The authorized capital of the company is Rs 1,00,000 divided into
10000 equity shares of Rs 10 each
CONTENTS OF CAPITAL CLAUSE
The amount of share capital which in which the company is
registered

Division into shares of fixed amount

Number of shares which subscriber of moa have agree to

subscribe

Types of shares

The share shall not be less than one per share

The number of shares are mentioned opposite to the name

of subscriber
CONCLUSION

Capital clause is one of the most fundamental

part in the MOA and altering the same is the
major change

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