Object Clause in the MOA of the Company

Memorandum of Association is one of the most important documents along with the Article of Association of company. It is a legal document that is prepared at the time of the incorporation of the company defining its relationship with its members. Also, it provides the information about the public at large as it is accessible to the public. This document acts as a charter of the company and is required to be signed by founder members of the company at the time of its incorporation. The Memorandum of Association consists of the details like company’s name, physical address of registered office, names of shareholders and the distribution of shares.  There are in total 6 clauses in the memorandum of association consisting of the different details of the company. Through this blog we will be taking an elaborated look at the object clause of the memorandum of association of company.

Object Clause in the MOA of the Company

Lawdef- Object Clause in the MOA of the Company

What are the clauses of MOA?

The Main six clauses of MOA are as follows-

  1. Name Clause
  2. Residency clause
  3. Object Clause
  4. Liability Clause
  5. Capital clause
  6. Subscription clause

What is the Object clause?

Object clause of one of the most crucial clauses in the MOA consisting describing the proposed objectives of the company. The purpose for which the company is formed and towards which it will work is mentioned under this clause. This clause is divided into two parts one of the main clause and other is the sub clause.  The main clause of the MOA will give a brief about the activities that will be carried by the firm that can include the activities like manufacturing, trading or providing any kind of services by the company. Further, the sub clause described the activities incidental to the main clause. Also, it can contain the activities related to the business keeping in mind the diversification needs of future and to avoid alteration in future. This is because a company cannot go beyond its MOA and is legally prohibited from undertaking any activity that is not specified in MOA.

What is the benefit of having an Object Clause?

With the proper object clause in place the company clearly specifies the purposes for which it is formed and is intended to be operated. MOA is available to everybody subscribers and the stakeholder with object clause they can ascertain the purpose for which their money will be used by the company.  Also, it provide protecting to the people dealing with company as they know the scope of activity of the company. Further, the board of directors cannot misuse the company’s fund and allows them to use the money only for the purposes mentioned in MOA.

How to make changes in the Object clause of the Company?

In some case the situations may arise wherein the company desires to take up some new activities and as a result it is required to alter its object clause of the MOA.  Making alteration in the activities of the company is not a small thing thus there is a complete step by step procedure that needs to be followed. Here we have listed out the procedure for you-

  1. A board meeting must be convened by giving the notice of not less than 7 days to the members of the board to discuss the agenda, fix the date, time and place of the extra ordinary general meeting, approving and authorizing the notice of EGM.
  2. A notice at least 21days prior to the annual general meeting should be sent to all the members. On the date specified the EGM must be conducted and the required resolution must be passed for the alteration of the object clause.
  3. Finally the MGT 14 must be filed along with the relevant to the ROC of passing the special resolution. The relevant docs include the final altered copy of MOA, the copy of resolution passed, copy of notice of EGM etc.


To sum up we can say like just like the constitution is important for a country the MOA is important for the company. Thus, at the time of preparing the MOA utmost care must be taken at the time of preparing the Memorandum of Association in the initial time only.