Memorandum Of Association
Introduction
The first step towards the formation of a company is to prepare the document known as Memorandum of Association.
According to Section: 2 (28) it means-
"Memorandum means the memorandum of association of a company as originally framed or as altered from time to time in pursuance of any previous Companies Act or this Act. "
In Ashbury Railway Carriage Co. ltd. vs Rich. Memorandum of association was defined as, "the charter of the company that defines the limitation of the powers of a company to be established under the Act."
Thus, it is a charter of the company containing the fundamental conditions, which set out the constitution of the company. It defines object, powers and the limitation of the company. It enables shear holders, creditors and also outsiders to know what is company's permitted rang of enterprise.
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