ABSTRACT
The memorandum of association is the document that regulates the affairs of the company in respect to outsiders. This chapter makes students to realize that a company’s external legal relations are determined by the memorandum, and also that this document requires minimum disclosures in relation to capital, objects and the country of registration. It explains the contractual capacity of companies and the consequences that follow from the memorandum. The memorandum must contain certain information given in the form of clauses. The name chosen by the company must satisfy common and statute law before it will be accepted for registration. The subscribers to the memorandum declare that they desire to be formed into a company and agree to take the number of shares given opposite their full names. Each subscriber must sign the memorandum in the presence of least one witness old enough to understand what he is doing.
