In a way, it creates a shield of protection to the creditors by limiting the activities of a company. The clause itself sets a limitation stating that the company cannot invest in any other sphere that is beyond the purview of the objects clause. It helps the subscribers understand their purpose of investing in the capital of a company. The object clause holds its importance in determining the purpose and the capacity of a company. The object clause is divided into three parts, namely: The object clause in a Memorandum of Association (MOA) holds immense importance as it sets out the purpose for which the company has been formed and the nature of the business it intends to conduct. The public records of a company are generally kept in the registered office of the company, which is another reason why a company must have a registered office, and its location must be known to the public. The purpose of having a registered office is many folds which include the feasibility of any person or the Registrar in serving notices, documents and other communications to the public. Section 12 (1) of the 2013 Act states that a company within 30 days of its incorporation or before commencing its business must have a registered office. Within 30 days of the incorporation, the company must file the detail of the registered office in Form No. For example, The companies with an authorised capital of 5 crore rupees and above must use the word вЂcorporationвЂ™ with its name.ДЄ company must always mention in its Memorandum of Association the name of the state in which the registered office of the company is situated. The companies shall include the word вЂpublic limitedвЂ™, вЂprivate limitedвЂ™ and вЂcorporationвЂ™ as per required. However, the Registrar is not expected to perform any detailed investigation except ensuring that the provisions of Section 7 (1) (c) of the Companies Act 2013 have duly complied. The Registrar before granting any approval must conduct a proper investigation relating to the genuineness of the proposed name. The Registrar shall provide its approval or rejection within 14 days from the receipt of the application. 1-A under Rule 4-A of the Companies (Central Government) Rules & Forms, 1956. The promoters of a company must seek such consent through a proper application procedure made in Form No. The only way of avoiding the issue of identical name is to make an application to the Registrar of Companies to seek advance approval of the name of a company. The Central Government could restrain a company from adopting any identical name as that could affect the goodwill of the already existing company and mislead the public in general. A company shall not adopt a name that resembles the name of a company which has already got a legal existence or has been incorporated already.

However, the name of a company shall not contravene the provisions of the Emblems and Names (Prevention of Improper Use) Act, 1950. MOA is a charter of a company which empowers a company to operate for a definite purpose and function within a set of prescribed objectives.ДЄ company shall have a name of its own which shall denote its legal existence.

That is what makes a company operational and provides longevity to the central machinery of a company, in the long run, to function effectively. The foundation of a company lies in the appropriate drafting of MOA. MOA forms the skeleton structure of a company. Similarly, the constitution of a company is not possible without a crucial document called the Memorandum of Association (MOA). Likewise, the skeleton structure plays a pivotal role in the human body when it comes to supporting and protecting the body to make it functional. вЂњThe more work you put in on your outline and getting the skeleton of your story right, the easier the process is later.вЂќ вЂ“ Drew GoddardДЄ famous but not so famous quote by Andrew Brion Hogan Goddard, better known as Drew Goddard, a famous American film and television screenwriter, director, and producer, explains the utility of skeleton structure of any undertaking that needs to be functional to bear productive output.

Definition of memoranda