There are several documents that a registered company has but which document contains the aims and objectives of the company? Well if you are looking answer for the same then you are in right place.
And the answer is the Memorandum of Association. Yes, that’s right. A Memorandum of Association is the exact document that will contain all the aims and objectives of any particular company!
What Is the Aims And Objectives Of The Company?
So what comes under the aims and objectives of the company. To give you an example, read the following paragraph that can be present in the company’s aims and objectives.
The company’s aims and objectives are to provide a high-quality product or service that meets the needs and wants of its customers. The company also aims to make a profit in order to continue operating and expanding its business.
Furthermore, the company strives to create a positive work environment for its employees and to be a good corporate citizen in the community.
What Is a Memorandum Of Association?
A memorandum of association (MoA) is a document that outlines the initial shareholders of a company and their respective shareholdings.
The MoA is also sometimes referred to as the articles of association. The MoA must be filed with the Registrar of Companies at the time of incorporation.
The MoA is a key document as it sets out the company’s objects, which in turn determine the powers of the company. The objects clause in the MoA is important as it sets out what the company can and cannot do.
For example, if a company’s objects clause does not include the power to buy and sell property, the company cannot engage in such activities.
The MoA also sets out the liability of shareholders. In most cases, shareholders are only liable for the amount of money they have invested in the company (i.e. their share capital).
However, in some cases, shareholders may be liable for the debts of the company if they have guaranteed the repayment of debts or have given personal guarantees.
The MoA is a public document and can be inspected by any member of the public. The MoA can be amended by special resolution of the shareholders. A special resolution requires the approval of at least 75% of the shareholders.
We believe you got the answer to your question: which document contains the aims and objectives of the company and the answer is MOA. We also learned about what are aims and objectives of the company and what exactly is MOA!