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Complete guide of alteration of Memorandum of Association

The Memorandum of Association (MOA) is a crucial document that outlines the scope, objectives, and limitations of a company. It provides the framework within which the company operates and any changes to the MOA can have significant implications. Reasons for altering the MOA may arise from changes in the company's business model, expansion plans, or legal requirements. This article will provide a step-by-step procedure for the alteration of the Memorandum of Association, along with the necessary documents and an in-depth exploration of the topic.

Overview of Memorandum of Association:

The MOA is a legally binding document that defines a company's constitution and the extent of its activities. It establishes the fundamental rules and regulations governing the company's affairs and outlines its objectives, powers, and limitations. The MOA is pivotal in establishing and maintaining relationships with shareholders, creditors, and stakeholders. During the incorporation process, the MOA must be registered with the Registrar of Companies (ROC) in compliance with the provisions of the Companies Act, 2013, and any subsequent amendments.

Key Clauses within the MOA:

The MOA presents several essential clauses, as specified under section 4 of the Companies Act, 2013:

  1. Name Clause: This clause mandates a unique company name that does not resemble existing companies.

  2. Registered Office Clause: It designates the official address for the company, where all communications and notices are sent.

  3. Objective Clause: This clause declares the main objectives and scope of the company's activities while outlining authorized pursuits and restrictions.

  4. Liability Clause: It outlines the shareholders' liability in the event of financial losses or liabilities faced by the company.

  5. Share Capital Clause: This clause establishes the maximum amount of capital the company can issue to its shareholders.

  6. Association Clause: This affirms the subscribers' intention to form the company and become its members.

When Alteration of MOA is Permitted:

Alteration of the MOA is allowed in various circumstances, including:

  1. Change in Objectives: When a company intends to alter or expand its business objectives, the MOA must reflect these changes.

  2. Change in Name: In cases where a company wants to change its name, the MOA must be appropriately amended.

  3. Change in Registered Office: If a company wishes to relocate its registered office to another state, the MOA must be modified accordingly.

  4. Change in Authorized Share Capital: An increase in authorized share capital necessitates MOA alteration to validate the change.

  5. Legal Requirements: Compliance with the Companies Act, 2013, and other applicable laws may require companies to alter their MOA.

Documentation Requirements for MOA Alteration:

The documents necessary for MOA alteration may vary based on the specific type of alteration. Generally, the following documents are required:

  1. Notice of the General Meeting: A notice, along with an explanatory statement, must be sent to all shareholders.

  2. Draft Resolution: A proposed alteration of the MOA must be included in the notice of the general meeting.

  3. Altered MOA: The proposed changes should be clearly highlighted or underlined in the altered MOA circulated to the shareholders.

  4. Board Resolution: Approval of the proposed alteration must be obtained through a board resolution.

  5. Shareholders' Resolution: A special resolution, supported by a three-fourths majority, is required from the shareholders.

  6. Minutes of the General Meeting: These must be prepared, signed by the chairman and filed with the ROC.

  7. Form MGT-14: Within 30 days of passing the resolution, Form MGT-14 must be filed with the ROC.

  8. Additional Documents: Depending on the alteration, the ROC may request supplementary documents.

Procedure for Alteration of MOA:

The following step-by-step process outlines the procedure for altering the MOA:

  1. Hold a Board Meeting: Discuss and pass a resolution for the proposed alteration, approved by a majority of board members.

  2. Hold a General Meeting: Issue a notice to shareholders at least 21 days in advance. Obtain their approval through a special resolution.

  3. Prepare an Amendment to the MOA: Draft an amendment, incorporating the proposed changes, signed by two directors and witnessed.

  4. File the Amendment: Submit the signed and witnessed amendment, along with required documents, to the ROC for approval.

  5. Obtain Certificate of Registration: Upon approval, the ROC will issue the certificate, rendering the amended MOA effective.


Altering the MOA entails a comprehensive procedure aimed at ensuring a company's growth while safeguarding the interests of stakeholders. Compliance with legal frameworks is crucial to operating within the boundaries set by objectives. The flexibility provided by altering the MOA allows companies to adapt to changing business needs while making informed decisions. Seeking guidance from legal experts, such as those at The Tax Heaven, is advisable to ensure compliance with applicable laws and regulations.

By incorporating alterations efficiently and maintaining compliance, companies can achieve growth while adhering to legal requirements.

Frequently Asked Questions

The Memorandum of Association (MoA) is a legal document that sets out the constitution and objectives of a company. It defines the company's scope of activities and powers.

Alteration of Memorandum of Association refers to making changes or amendments to the existing clauses of the MoA to reflect any modifications in the company's objectives, capital structure, or other provisions.

Companies may need to alter their MoA for various reasons, including changing business objectives, increasing authorized capital, altering the company's name, or making other modifications required by law or shareholders.

The procedures for altering the MoA typically involve obtaining approval from the board of directors, shareholders, and relevant regulatory authorities, such as the Registrar of Companies (ROC).

The board of directors must convene a meeting to discuss and approve the proposed alterations to the MoA. A resolution must be passed by the board authorizing the alteration and any related actions.


The Tax Heaven

Mr.Vishwas Agarwal✍📊, a seasoned Chartered Accountant 📈💼 and the co-founder & CEO of THE TAX HEAVEN, brings 10 years of expertise in financial management and taxation. Specializing in ITR filing 📑🗃, GST returns 📈💼, and income tax advisory. He offers astute financial guidance and compliance solutions to individuals and businesses alike. Their passion for simplifying complex financial concepts into actionable insights empowers readers with valuable knowledge for informed decision-making. Through insightful blog content, he aims to demystify financial complexities, offering practical advice and tips to navigate the intricate world of finance and taxation.

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