An Elaborate Study On The Object Clause Of MOA And Relevant Doctrines

Paul T Karimpanackal & Krishti Chakraborty BA LLB (Hons), Amity Law School, Amity University Noida, Uttar Pradesh

ABSTRACT

The Memorandum of Association (MOA) of a company is essentially a constitution and the foundation document. The MOA consists of all the conditions prerequisites and other guidelines on how a company can achieve their business goals. Since the MOA contains how a company can work it is necessary that the organisation adheres to the rules as whatever that comes outside the purview of this document is void and not legal hence jeopardising the business organisation. Object clause is the important and the longest clause which contains the object of the company or what the company aim to achieve. The object clause and the doctrine of vires has been studied in detail in this article and how they can be considered the cornerstones and foundation of the MOA and subsequently a company. The doctrine of ultra vires states that any activity taken up by the company which is not mentioned or beyond the scope of the object clause is considered illegal and void. Understanding the importance of ultra vires is important for both the company and external parties. This article also focusses on the doctrines of indoor management which provides protection to the company from outside forces interfering and keeping the interests of the company internal until there is a legitimate claim. Doctrine of constructive notice presumes that a person has an idea of the contents of the MOA of the company before entering into an agreement. Relevant case laws of the doctrines have been added to clarify the topic more.

Keywords: Company, Memorandum of Association, Object Clause, Doctrines.