Drafting Memorandum of Association
A Memorandum of Association is an important legal corporate document. It is prepared in the registration and formation process of a company and it defines the relationship of shareholders and the company to outsiders. More importantly, this legal document states the duties, rights, powers, and privileges of the shareholders of the company. A company can only undertake activities that are specified in the memorandum, which is why it is best to hire lawyers and legal consultants in Dubai for its drafting.
At HHS Lawyers, our legal drafting team is composed of seasoned lawyers in Dubai with a vast experience in drafting corporate contracts and agreements. The firm takes a rounded approach by digging deeper into a business and its needs to identify potential risks.
Clients of the firm trust us in providing them with a comprehensive Memorandum of Association that helps not only in reducing commercial and legal risks and supporting business growth, but also in protecting a business, its assets, and its brand.
Every draft of Memorandum of Association from the firm includes the crucial elements of this type of document, which include:
Name and address of each shareholder
The information given by shareholders or company members should be what is reflected in their individual passports. In this section, it is to be mentioned as well the representative of the legal entity, which means there’s a need to appoint a company director.
Proposed name for the business
The name for the business should not be identical or confusingly similar to the name of any business that already exists. The name shouldn’t create an impression as well that it’s carrying on the operations of an existing company, which means it shouldn’t be misleading.
The clause will identify the object on which the business is to be established. The company isn’t entitled to do other activities other than what are specified in the clause. Our experts ensure the clause includes main objects the company will pursue after incorporation and incidental objects that provide necessary support in order to attain the main objects. We also help ensure the object clause doesn’t contain anything that’s in opposition to the interest of the public, against the laws of the country, and contradictory to the Commercial Companies Law (CCL).
This clause will state the nature of liabilities of the company members in case the company is being wound up.
Here, it is stated the proposed company’s total capital. The amount that is indicated in the MOA will be considered as the company’s authorized capital. The business can’t collect funds that exceed this authorized amount. In addition, the capital division into preference share capital and equity share capital will be mentioned in the clause. Number and value of shares for each category will be added to the memorandum. In the capital clause, it is specified when the contributions are made to the share capital of the company. In most cases, this is during the company formation. Any exceptions are to be noted.
Company duration and termination
A company may be established within a fixed period of time or indefinitely.
Owing to the expertise of our seasoned lawyers, we are able to provide legal drafting services in UAE, specifically on the drafting of a Memorandum of Association, which addresses the interests of all shareholders and enable creditors and third parties who will be dealing with the business to understand its range of activities.
Apart from the MOA drafting, we also assist in MOA amendment, which is a secondary legal document constituted after a MOA. It’s where rules and regulations that apply to the company management and administration are laid down. We prepare a MOA and amendment to a MOA in bilingual format and based on any information clients provide our legal drafting team.
If you wish to speak to our experts on drafting of Memorandum of Association in UAE, call us for a free initial consultation!