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Simple English definitions for legal terms
memorandum of association
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A quick definition of memorandum of association:
A memorandum of association is a legal document that sets up a corporation and includes its name, purpose, and duration. It can establish whether the corporation has limited liability or not. It is similar to the articles of incorporation, which is a governing document that outlines the basic terms of a corporation's existence, such as the number and classes of shares and the purposes and duration of the corporation. The articles of incorporation are usually filed with the secretary of state to form the corporation.
A more thorough explanation:
A memorandum of association is a legal document that establishes a corporation, with or without limited liability. It includes the company's name, purpose, and duration. This document is similar to the articles of incorporation in the United States.
- A group of entrepreneurs wants to start a new business. They create a memorandum of association that outlines the company's name, purpose, and how it will be run.
- A non-profit organization creates a memorandum of association to establish its legal status and purpose.
These examples illustrate how a memorandum of association is used to legally establish a corporation or organization and define its purpose.