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What are the 7 Clauses of MOA?


Last Updated on July 6, 2024 by Kanakkupillai

The Memorandum of Association (MOA) is a basic document that explains the core purpose, management, and methods of a company. It serves as the base for a company’s official appearance and governs its activities. Understanding the key terms within the MOA is important for anyone involved in the process of business creation and management.

The 7 Clauses of MOA

  1. Name Clause

The name section describes the unique name under which the business will run. This name must be different from any other named company and meet the regulatory standards set forth by the proper authorities. The name part also explains the process for changing the company’s name, which normally needs approval from the proper government agencies.

  1. Registered Office Clause

The registered office phrase describes the company’s official address, which serves as the legal core and point of contact for the business. This part ensures that the company has a clear real address where it can receive official messages and legal papers. Changes to the stated office address may require reporting to the proper officials.

  1. Object Clause

The goal section explains the company’s main purpose and the actions it is allowed to perform. This part explains the major and minor goals, which determine the scope of the company’s actions. The goal section also sets boundaries and ensures legal compliance, as the company’s actions must match the stated objectives.

  1. Liability Clause

The liability clause shows the amount of the company’s duty and the liability of its members. It can describe whether the company has restricted or unlimited responsibility, which affects the personal financial duty of the owners. This part also handles the transferability of shares and the rights linked with them.

  1. Capital Clause

The capital clause describes the company’s approved share capital, which represents the maximum amount of capital the company is allowed to raise through the sale of shares. This part also shows the different types of shares, their various rights, and the process for growing or lowering the share capital.

  1. Association Clause

The partnership clause says the desire of the customers to form a company and become its members. It describes the starting membership and the number of shares each user has chosen to take, setting the base for the company’s ownership structure.

  1. Subscription Clause

The membership part shows the information of the members, including their names, addresses, jobs, and the number of shares they have chosen to take. This part also includes the signatures of the members and the witnesses, publicly showing their promise to the company.


The seven parts of the Memorandum of Association are crucial in explaining the company’s character, goal, and legal context. By understanding each part and its value, founders, business owners, and experts can ensure that their company’s MOA is properly written and matched with the relevant laws and regulations. Compliance with the MOA is important for the easy running and long-term growth of any business.


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