Legal ; Regulatory Aspects of Banking Unit – 57 : Memorandum Of Association ; Articles Of Associat

Legal ; Regulatory Aspects of Banking Unit – 57 : Memorandum Of Association ; Articles Of Association Memorandum of Association The first step in the formation of a company is the preparation of the memorandum of association. It is a document of great significance as it embodies the fundamental rules regarding the constitution and scope of activities of a company. The purpose of memorandum of association among others is to enable the member's creditors and those who deal with the company to know the permitted scope of its activities. Various clauses of the memorandum of association : a. Name clause b. Registered office clause c. Objectives Clause d. Liability clause e. Capital clause f. Association or subscription clause ARTICLES OF ASSOCIATION Articles of Association is the second important document of a company. It consists of a set of rules/ regulations and bye laws made by the company for internal management of the company and for carrying out the objects of the company embodied in its memorandum of association. The Companies Act, 1956 requires that the articles of association must be filed together with the memorandum of association by the following kind of companies: • Unlimited company • Company limited by guarantee • Private company limited by shares