Memorandum of Association

1. Memorandum
of
Association
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2. 2

3. Memorandum of Association
•First step in the formation of a company.
•Constitution of the company.
•Defines limitations of the powers of a
company.
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4. Clauses of MOA
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5. MEMORANDUM OF ASSOCIATION
OF
RELIANCE INDUSTRIES LIMITED
Name of the
company
RELIANCE INDUSTRIES LIMITED
Registered OfficeMaharashtra
Object To carry on the business of man made fibre products of all kinds.
(For detail see next slide )
Liability Liability of members is limited
Capital 500,00,00,000 * 10 ( 500 crores equity share of rs. 10 each)
100,00,00,000 * 10 ( 100 crores equity share of rs. 10 each)
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600,00,00,000 * 10 = 60,00,00,00,000 (Rs. Six thousand croroes only )
Associations
(for details
www.ril.com/downloads/pdf/MOA.pdf
)
There were 7 subscribers who initially hold the equity shares of the
company. For e.g.
Sr. NoName Address No. of
equity
share
Witness
1 M.D.
SHIVNANJAPPA
36, Cunningham
Road, Bangalore - 18
500 C.V. SRINIVASA
MURTHY

6. OBJECTS
1.To carry on the business of all kinds of man made fibres by any process using
petrochemicals of all description or by using vegetable or mineral oils.
2.To carry on the business of manufacturers, dealers etc. of all types of petro-chemicals
like Naphta, Methane, Ethylene, Propylene, Butenes, Naphthalene etc. all other
petrochemical products and polymers in all their forms like resins, fibres, sheets
mouldings, castings etc.
3.To carry on the business of manufacturing, buying, selling, exchanging, converting,
Altering etc or using or advising users in the proper use of, cotton yarn, pure silk yarn
and such other fibre, fibres and fibrous materials, or allied products, by-products,
substances or substitutes for all or any of them, or yarn or yarns, for textile or other
use, as may be practicable.
4. To manufacture or help in the manufacturing of any spare parts, accessories, or
anything or things required and necessary for the above mentioned business.
NOTE : There are other objects incidental or ancillary to the attainment of main object. For
complete understanding kindly visit www.ril.com/downloads/pdf/MOA.pdf

7. ALTERATION OF THE
MEMORANDUM
Alteration
Of
Name
Clause
Alteration
Of
Registered
office
clause
Alteration
Of
Object
clause
Alteration
Of
Liability
clause
Alteration
Of
Capital
clause

8. •Alteration of name clause : By passing a “Special resolution” and
with the approval of Central govt. in writing.
•Alteration of registered office : By passing a Board’s resolution
and notifying the registrar within 30 days.
•Alteration of Object clause : Object clause can be altered under
some predefined circumstances.
•Alteration of liability clause : By adding a new “liability clause” in
case of changing liability from unlimited to limited.

•Alteration of capital clause : By passing an ordinary resolution,
provided it is authorized by article to do so.

9. Doctrine of Ultra Vires
•Ultra means ‘beyond’
•Vires means ‘the powers’
•Ultra Vires means ‘beyond the powers’.
•Its implication.
•Rationale Behind Doctrine?
 artificial person- no intelligence
Protect Shareholder interest.
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10. Effects of Ultra Vires
•Personal Liability of Directors
on the basis of fact not law
•Ultra Vires acquired property
Company’s property Secure
•Ultra vires contracts
Claim by third party void(example)
•Ultra vires lending
Borrower can be sued to recover money
•Ultra vires torts
Company not liable outside ambit of object.
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11. Thank You
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